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 Budgeted Activity Cost Production $441,600 275,100 Inspection 116,200 Shipping 156,000 Customer service 53,200 Total 51,042,100 Setup The activity bases identified for each activity are as follows: Activity Activity Base om 4-48 sentarme Production Machine ROUPS Setup Number of setups Inspection Number of inspections SNOON Number of customer orders Customer service Number of customer service requests The activitybave usage quantities and units produced for the three products were determined from corporate records and are as follows: Number of Number of Number of Customer Service Units Machine Hours Setups Inspections Customer Orders Requests WE SUN 3,040 180 200 800 407,600 Check My Work Save and Est Subuk Assignment for Grading Number of Number of Number of Service Units Machine Hours Setups Inspections Customer Orders Requests White sugar 3,040 180 280 800 407,600 Brown sugar 1,930 270 420 2,200 250 4,825 Powdered sugar 1,930 250 700 1,000 -110 4,825 Total 6,900 700 1,400 4,000 400 17,250 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 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 cost equal across all three products since they require the same machine time per unit The unit cost different because the products consume many activities in ratios different from the