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 organtation as follows: Activity Budgeted Activity Cost Production $517,500 Setup 189,000 Inspection 112,800 Shipping 154,000 Customer service 33,900 Total $1,007,200 The activity bases identified for each activity are as follows: Activity Activity Base Machine hours Production 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 Number of Customer Number of Service Units Setups Inspections Customer Orders Machine Hours Requests White sugar 3,040 130 240 880 30 7,600 Brown sugar 1,930 190 360 2,420 190 4,825 Powdered sugar 1,930 180 1,100 80 4,825 Total 6,900 500 1,200 4,400 300 17,250 Each product requires 0.9 machine hour per unit. 600 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 inte rinne the Poor the same machine time per unit