Activity Based Product Costing Sweet Sugar Company manufactures three products (white sugar, brown sugar, and powdered sugar) 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: Budgeted Activity Cost Activity Production Setup Inspection Shipping $489,100. 22,000 86,000 120,400 Customer service. Total 67,500 $985,000 The activity bases identified for each 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 Service Number of Number of Setups Number of Customer Orders Machine Hours Inspections Requests Units BAN 50 8.035 Brown sugar 2,040 230 300 Powdered sugar 2,050 220 500 1,070 130 5,125 Total 7,300 600 1,000 4,300 500 18,250 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 Setup Inspection Shipping. Customer service per machine hour. per setup per move per cust. ord. per customer service request 2. Determine the total and per-unit activity cost for all three products. White sugar Brown sugar Total Activity Cost Activity Cost Per Unit 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 thei