Activity Based Product Casting Mello Handfacturing Company is a diversified manufacture that manufactures three products (Alpha, Beta, and Omega) in a continuous production process. Senior management has asked 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 Activity Cost Pool Production $250,200 Setu 55.000 Materials handling 9,750 Inspection Product engineering 123.200 $507.15 The activity bases identified for each activity are as follows: Activity Activity Base Machine hours Number of setups Materials handling Number of parts ber of inspection hos og Number of engineering hours The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follor Machine Hour's Number of Setups Number of Parts Number of Inspection Hours Number of Engineering Hours Units Alpha 1.440 400 1,800 1,350 Beta 1,080 300 175 Omega 720 165 310 550 500 140 900 Total 3,240 325 1,200 440 4,050 Each product requires 48 minutes per unit of machine time. Required: If required, round all per unit amounts to the nearest cent. 1. Determine the activity rate for each activity. Production per machine hour Setup per setup Materials handling per part Inspection per inspection hour Product engineering per engineering hour 2. Determine the total and per-unit activity cost for all three products Each product requires 48 minutes per unit of machine time. Required: If required, round all per unit amounts to the nearest cent. 1. Determine the activity rate for each activity. Production per machine hour Setup per setup Materials handling per part per inspection hour Inspection Product engineering per engineering hour 2. Determine the total and per-unit activity cost for all three products. Total Activity Cost Activity Cost Per Unit Alpha Beta Omega 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