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 controllar identified the amount of factory overhead required by the critical activities of the organization as follows: Activity Budgeted Activity Cost Production $457,500 Setup 212,000 Inspection 96,000 Shipping 148,200 Customer service 57,500 Total $971,200 The activity traves identified for each activity are as follows: Activity Activity Base Production Machine hours Setup Number of setups Inspection Number of inspections Slicoir Number of customer orders Customer service Number of customer service requests The activity base sap quantities and units produced for the three products were determined from corporate records and are as follows: Number of Customer Number of Number of Service Setups Customer Orders Machine Hours Inspections Requests Units WNE 3,300 130 240 780 50 8,250 Brown 7.100 190 2,150 320 5.250