Process Activity Analysis

Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process consists of three activities:

Mixing: water, sugar, and beverage concentrate are mixed.

Filling: mixed beverage is filled into $12-oz.$ cans.

Packaging: properly filled cans are boxed into cardboard "fridge packs."

The activity costs associated with these activities for the period are as follows:

This process begins by mixing and filling $5,720,000$ cans during the period, of which only $5,500,000$ cans are actually packaged. $220,000$ cans are rejected due to underweight kicks.

$220,000$ cans to $55,000$ cans, thus increasing the number of filled cans to $5,665,000[5,500,000+(220,000-55,000)].$

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.

$

c$.$ Determine the expected total activity cost per packaged can after improvements. Round to three decimal places.

$

per can