Activity-Based Product Costing 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 $455,400 166,400 Setup Inspection Shipping 114,400 159,900 71,400 $967,500 Customer service Total 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: Customer Number of Number of Number of Service Units Setups Inspections Customer Orders Machine Hours Requests White sugar 2,900 100 260 820 60 7.250 Brown sugar 1,850 2,260 380 4,625 150 390 Machine Hours White sugar 2,900 Brown sugar 1,850 Powdered sugar 1,850 Total 6,600 Setups Inspections Customer Orders Requests 100 260 820 60 7,250 150 390 2,260 380 4,625 150 650 1,020 160 4,625 400 1,300 4,100 600 16,500 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 Setup per 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 per unit? The unit costs are different because the products consume many activities in ratios different from the