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 Setup Inspection Budgeted Activity Cost $401,200 152,000 93,600 Shipping Customer service Total 114,800 35,400 $797,000 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 Service Number of Setups Machine Hours Number of Inspections Number of Customer Orders Requests Units White sugar 2,990 100 240 820 30 7,475 Brown sugar 1,900 150 360 2,260 190 4,750 Defered eunac 1.010 150 600 1.030 4.775