The 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: Mixing $227,000 Filling 200,500 Packaging 97,500 Total
$525,000 The activity costs do not include materials costs, which
are ignored for this analysis. Each can is expected to contain 12
ounces of beverage. Thus, after being filled, each can is
automatically weighed. If a can is too light, it is 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 filling, resulting in underweight cans.
This process begins by mixing and filling 7,800,000 cans during the
period, of which only 7,500,000 cans are actually packaged. 300,000
cans are rejected due to underweight kicks. A process improvement
team has determined that cooling the cans prior to filling them
will reduce the amount of overflows due to expansion. After this
improvement, the number of kicks is expected to decline from
300,000 cans to 75,000 cans, thus increasing the number of filled
cans to 7,725,000 [7,500,000 + (300,000 - 75,000)]. a. Determine
the total activity cost per packaged can under present operations.
Round to the nearest cent. $fill in the blank 1 per can b.
Determine the amount of increased packaging activity costs from the
expected improvements. $fill in the blank 2 c. Determine the
expected total activity cost per packaged can after improvements.
Round to three decimal places. $fill in the blank 3 per
can
The Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process consists of three activitie
-
answerhappygod
- Site Admin
- Posts: 899604
- Joined: Mon Aug 02, 2021 8:13 am
The Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process consists of three activitie
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!