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Sweet Sugar Company manufactures three products (white sugar, brown sugar, and powdered super) in a continuous production process. Senior management has asiced the controller to conduct an activity based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows: Activity Budgeted Activity Cost Production $466,200 Setup 233,400 Inspection 73,800 Shipping 129,200 Customer service 52,000 Total $954,600 The activity bates Identified for which activity are as follows: Activity Activity Base Production Machine hours Setup Number of setups Inspection Number of inspections Shipping Number of customer orders Customer service Number of customer service requests The activity base usage quantities and units produced for the three products were determined from corporate records and are as follows Customer Number Number of The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: Customer Number of Number of Number of Service Setups Customer Orders Machine Hours Inspections Requests Units White sugar 3,260 150 180 760 40 8,150 Brown sugar 2,070 230 270 2,090 250 5,175 Powdered sugar 2,070 220 450 950 110 5,175 Total 7,400 600 900 3,800 400 18,500 Each product requires 0.9 machine hour per unit. Required: If required, round all per unit amounts to the nearest cent. 1. Determine the activity rate for each activity, Production so x per machine hour Setup per setup Inspection per move Shipping per cust. ord. Customer service per customer service request 2. Determine the total and per-unit activity cost for all three products, Total Activity Cost Activity Cost Per Unit Inspection per move Shipping per cust. ord. Customer service per customer service request 2. Determine the total and per-unit activity cost for all three products. Total Activity Cost Activity Cost Per Unit White sugar Brown sugar Powdered sugar 3. Why aren't the activity unit costs equal across all three products since they require the same machine time per unit? The unit costs are different because the products consume many activities in ratios different from the

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