Question
Activity-Based Costing Pure Cane Sugar Company manufactures three products (white sugar, brown sugar, and powdered sugar) in a continuous production process. Senior management has asked
Activity-Based Costing Pure Cane 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: waac25h_ch25_pr25_7a1.gif The activity bases identified for each activity are as follows: waac25h_ch25_pr25_7a2.gif The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: waac25h_ch25_pr25_7a3.gif Each product requires 0.25 machine hour per unit. Required: 1. Determine the activity rate for each activity. Activity Rate Production $ /mh Setup $ /setup Inspection $ /insp. Shipping $ /cust. ord. Customer Service $ /req. 2. Determine the total and per-unit activity costs for all three products. Round "Activity cost per unit" answers to two decimal places. White Sugar Brown Sugar Powdered Sugar Total activity cost $ $ $ Activity cost per unit $ $ $
Excel File Edit View Insert Format Tools Data Window Help A 49>4). Sat Jun 24 11:30:02 PM d E Fed ECB....e Cuts.docx a Chann St . WRD 26e_PR 25-7A.xlsx SmartArt Graphics OA B 5- Score: 9 Anewers are entered in the cel s with gray backgrounds. 10 Cells with non-gray backgrounds are protected and cannot be edited. 11 An asterisk (") wil appear to the right of an incorrect entry. The essay answer will not be graded. 12 14 1 15 16 17 18 19 Total activity cost Divided by total activity bese Activity rate 247500 12,500 $ 27.600 mh setups inspector 2.310 cus orders requests - - 20 2. 21 Brown Sugar Powdered Sugar Rato - - Cost Rate - Cost Rate - Cost 23 24 25 26 27 28 29 30 31 32 33 3. 110,000 12,000 mh 68,750 16,800 4.000 33,000 68,750 19.200 6,000 24,000 cust. orders 12,300 cust. orders cust. orders Custorner service 138,800 138,550 127.550 Number of units Activity coat per unit 17.35 27.71 25.51 Whi 34 Key essay answer here] 35 36 37 38 39 43 45 Pr. 25-7A , Normal View SumStep by Step Solution
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