Activity-Based Product Cost 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 Production Budgeted Activity Cost $577,500 269,400 Setup Inspection Shipping Customer service Total 122,200 129,600 48,400 $1,147,100 The activity bases identified for each activity are as follows: Activity Activity Base Production Machine hours Setup Number of setups 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: Number of Setups Machine Hours Number of Inspections Number of Customer Orders Customer Service Requests Units. White sugar Brown sugar 3,390 150 260 720 40 8,475 2,160 230 390 1,980 250 5,400 Customer Number of Number of Number of Service Setups Customer Orders Machine Hours Inspections. Requests Units White sugar 3,390 150 260 720 40 8,475 Brown sugar 2,160 230 390 1,980 250 5,400 Powdered sugar 2,150 220 650 900 110 5,375. Total 7,700 600 1,300 3,600 400 19,250 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 Setup Inspection Shipping Customer service per machine hour per setup per move per cust. ord. per customer service request 2. Determine the total and per-unit activity cost for all three products. White sugar Brown sugar Total Activity Cost Activity Cost Per Unit Powdered sugar 3. Why aren't the activity unit costs equal across all three products since they require the same machine time per unit? The unit costs are different because the products consume many activities in ratios different from the Check My Work 3 more Check My Work uses remaining. volume sales mix 3.