The activity costs associated with these activities for the period are as follows: Mixing $386,000 Filling 341,500 Packaging 97,500 Total $825,000 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 numbe 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)].

The activity costs associated with these activities for the period are as follows: Mixing $386,000 Filling 341,500 Packaging 97,500 Total $825,000 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 numbe 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)].

Name: a. Determine the total activity cost per packaged can under present o
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Description: a. Determine the total activity cost per packaged can under present operations. Round to the nearest cent.$4per canb. Determine the amount of increased packaging activity costs from the expected improvements.c. Determine the expected total activity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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