activity-based costing

Bear Manufacturing Company produces three models of an electronic device (Standard, Premium and Super) 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: 2. Determine the total and per-unit activity cost for all three products. Round all total costs to whole number and round all per unit amounts to the nearest cent. Formula: Activity-Base Usage Activity rate from Req. (1) = Activity cost; Sum all activity costs per product to determine the total activity costs and Divide the total activity overhead by budgeted units to compute the activity costs per unit for each pro \begin{tabular}{|l|r|r|r|r|r|r|r|} \hline \multicolumn{9}{|c|}{} & \multicolumn{4}{|c|}{ Activity costs assigned to products } \\ \hline Products & Setup & Materials handiling (MO) & Engineering & Machining & Inspection & Total overhead cost & Cost per unit \\ \hline & $ & $ & $ & & & \\ \hline Standard & & & & & & \\ \hline Premlum & & & & & \\ \hline Super & & & & & \\ \hline Total & & & & & \\ \hline \end{tabular} 3. Why aren't the activity unit costs equal across all three products since they require the same machine time per unit