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: Activity Production Activity Costs $247,500 Setup 48,000 Inspection 12,500 Shipping 69,300 27,600 $404,900 Customer service Total The activity bases identified for each activity are as follows: Activity Activity Base Machine hours Production Setup Number of setups Inspection Number of inspections Shipping Number of customer orders Number of customer service requests Customer service The activity-base usage quantities and units produced for the three products were determined from corporate records as follows: Number of Number of Customer Machine Number of Number of Customer Service Hours Setups Inspections Orders Requests Units White sugar 2,000 50 100 410 25 8,000 Brown sugar 1,250 70 160 1,100 200 5,000 Powdered sugar 1,250 80 240 800 120 5,000 Total 4,500 200 500 2,310 345 18,000 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.