Question: gment-take&inprogress-false eBook The Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process consists of three activities: 1. Mixing: water, sugar, and beverage

 gment-take&inprogress-false eBook The Brite Beverage Company bottles soft drinks into aluminum
cans. The manufacturing process consists of three activities: 1. Mixing: water, sugar,

gment-take&inprogress-false eBook The Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process consists of three activities: 1. Mixing: water, sugar, and beverage concentrate are mixed. 2. Filling: mixed beverage is filled into 12-oz. cans. 3. Packaging: properly filled cans are boxed into cardboard "fridge packs" The activity costs associated with these activities for the period are as follows Mixing Filling Packaging $317,000 281,500 136,500 $735,000 Total The activity costs do not include materials costs, which are ignored for this analysis. Each can is expected to contain 1 Thus, after being filled, each can is automatically weighed. If a can is too light, it is 2 ounces of beverage. rejected, or "kicked", from the filling line prior to being packaged. The primary cause of kicks is heat expansion. With heat expansion, the beverage overflows during iling, esulting in underweight cans. y mixing and filing 10,920,000 cans during the period, of which only 10,500,000 cans are actually packaged. 420,000 cans are rejected due to underweight kicks. A process improvement team has determined that cooling the cans prior to filling them will reduce the amoun After this improvement, the number of kicks is expected to decline from 420,000 cans to 105,000 can cans to 10,815,000 [10,500,000 + (420,000- 105,000)]. t of overflows due to expansion a. Determine the total activity cost per packaged can under present operations. Round to the nearest cent. per can b. Determine the amount of increased packaging activity costs from the expected improvements. a e 8:36 PM 8/8/2018

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!