Process Activity AnalysisThe 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 12-0z. 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$574,000Filling509.000Packaging152,000Total$1,235,000The 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 9,880,000 cans during the period, of which only 9,500,000 cans are actually packaged. 380,000 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 380,000 cans to 95,000 cans, thusincreasing the number of filled cans to 9,785,000 [9,500,000 + (380,000 - 95,000)].a. Determine the total activity cost per packaged can under present operations. Round to the nearest cent.per canb. 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

a) Total activity costs under present operations = $1,235,000 Total cans packaged under present…

ed cans are boxed into cardboard "fridge packs." ith these activities for the period are as follows: le materials costs, which are ignored for this analysis. Each can is ng packaged. The primary cause of kicks is heat expansion. With h and fillingn o 880.000 ns during the neriod ich only 9 500 C

ed cans are boxed into cardboard "fridge packs." ith these activities for the period are as follows: le materials costs, which are ignored for this analysis. Each can is ng packaged. The primary cause of kicks is heat expansion. With h and fillingn o 880.000 ns during the neriod ich only 9 500 C

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please do not give solution in image format thanku
Taguchi Loss Function Lanman, Inc., estimates its hidden external failure costs using the Taguchi loss function. Lanman produces plastic sheets that vary in thickness and grade. For one of its large-volume products, it was determined that k = $40,000 and T = 0.28 inches in diameter. A sample of four units produced the following values: Unit No. 1 2 3 $ 4 Required: Actual Diameter (y) 0.28 0.30 0.26 0.27 1. Calculate the average loss per unit. Round your intermediate calculations to six decimal places. If required, round your answer to the nearest cent and use the same in subsequent requirements. per unit 2. Assuming that 110,000 units were produced, what is the total hidden cost? 3. Assume that the multiplier for Lanman's hidden external failure costs is six. What are the measured external costs?
Vishano
Lampierre makes brass and gold frames. The company computed this information to decide whether to switch from the traditional allocation method to ABC: Brass Gold Units Planed 750 150 Material Moves 400 100 Machine Setups 500 750 Direct Labor Hours 600 1,100 The estimated overhead for the material cost pool is estimated as $13,000, and the estimate for the machine setup pool is $40,000. A. Calculate the allocation rate per unit of brass and per unit of gold using the traditional method? Round intermediate calculations and final answers t two decimal places. Brass 24.94 228.63 B. Calculate the allocation rate per unit of brass and per unit of gold using the activity-based costing method? Round intermediate calculations and final answers to two decimal places. Gold Brass Allocation Rate per Unit Gold Allocation Rate per Unit SA 35.2 177.33
Below are details of the four products made by Krane Ltd. A B C D Selling price per unit 60 80 100 120 Variable cost per unit 24 36 48 50 Machine time per unit 3 4 6.5 8 Weekly demand for all products is the same. Unfortunately, time available on the machine used to produce all four products is likely to be reduced in the coming week due to maintenance work required. If output of one of the products needs to be restricted and management want to lose as little profit as possible, which of the product line’s outputs should they restrict? Product A Product B Product C Product D
A micro brewery has provided the following information for last month. The inputs into Process 1 last month were: Materials Labour and Overhead The normal loss Losses are sold for € 0.50 per kg. Actual output 1,650 kg Which accounting entry is correct? (round calculations to two decimal places) Select one: O a. 2,000 kgs @ €1.60 per kg € 800 10%. Dr Abnormal Loss Account € 250.00 Cr Profit and Loss Account €250.00 O b. Dr Profit and Loss Account € 250.00 Cr Abnormal Loss Account €250.00 Dr Abnormal Loss Account €325.00 Cr Profit and Loss Account € 325.00 d. Dr Profit and Loss Account € 325.00 Cr Abnormal Loss Account €325.00
4. A plant manager considers the operational cost per hour of five machine alternatives. The cost per hour is sensitive to three potential weather conditions: cold, mild, and warm. The following table represents the operations cost per hour for each alternative- state of nature combination: Alternatives Cold cost/day Mild cost/day Warm cost/day Machine 1 $45 $35 $40 Machine 2 $40 $37 $42 Machine 3 $35 $30 $48 Machine 4 Machine 5 $55 $40 $20 $35 Using the optimistic criterion, which alternative is best? $44 $40