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 $12-0z.$ cans.

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

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

overflows during filling, resulting in underweight cans.

expected to decline from $460,000$ cans to $115,000$ cans, thus increasing the number of filled cans to $11,845,000[11,500,000+(460,000-115,000)].$

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