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 Setup Inspection Shipping Customer service Activity Costs $247,500 48,000 12,500 69,300 27,600 $404,900 Total The activity bases identified for each activity are as follows: Activity Base Activity Production Setup Inspection Shipping Customer service Machine hours Number of setups Number ofinspections Number of customer orders 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: Number of Customer Service Machine Hours 2,000 1,250 1,250 4,500 Number of Setups 50 70 80 200 Number of Inspections 100 160 240 500 Number of Customer Orders 410 1,100 800 2,310 Requests Units 8,000 5,000 5,000 18,000 White sugar Brown sugar Powdered sugar 25 200 120 345 Total