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 $540,200 Shipping Customer service Total 136,400 13,700 108,000 76,800 $935,300 The activity bases identified for each activity are as follows: Activity Production Machine hours of 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: Total Number of Setups Number of Customer Orders Machine Hours 1,210 NO 720 2,040 130 270 2.010 3,300 300 3,400 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 per machine hour Shipping Customer service per cut ord 2. Determine the total and per-unit activity cost for all three products. Total Activity Cost Activity Cost Per Unit 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 Previou