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:

The activity bases identified for each activity are as follows:

The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows:

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 $ $ $