Activity-Based Product Casting Sweet 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 Budgeted Activity Cost Production $453,600 154,800 123,000 Setup Inspection Shipping Customer service Total 117,600 48,400 $897,400 The activity bases identified for each activity are as follows: is Activity Activity Base Production Machine hours Setup Number of setup Inspection Number of inspections Shipping Number of customer orders Customer service 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: Customer Number of Number of Number of Service Setups Customer Orders Machine Hours Inspections Requests Units White sugar 3,170 100 300 840 40 7.925 Brown sugar 2,020 150 450 2,310 250 5,050 Powdered sugar 2,010 150 750 1,050 110 5,025 Total 7,200 400 1,500 4,200 400 18,000 Each product requires 0.9 machine hour per unit. Required: If required, round all per unit amounts to the nearest cent. 1. Determine the activity rate for each activity Production per machine hour per setup Setup Inspection per move Shipping per cust, ord Customer service per customer service request 2. Determine the total and per-unit activity cost for all three products, Total Activity Cost Activity Cost Per Unit White sugar Brown sugar Powdered sugar 3. Why aren't the activity unit costs equal across all three products since they require the same machine time par unit? The unit costs are different because the products consume many activities in ratios different from the