Activity-Based Product Costing Sweet Sugar Company manufactures three products (white sugar, brown sugar, and powdered suger) in a continuous production process. Senior management has asked the controller to conduct an activity based contingutudy. The controller identified the amount of factory overhead required by the entical activities of the organization as follows: Activity Budgeted Activity Cost Production $497,000 Sahap 199,000 Inspection 115,700 Shipping 164,000 Customer service 90,00 Total $1,065,000 The activity based 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 activitate usage quantities and units produced for the three products were determined from corporate records and are as follows Customer White sugar Customer Number of Number of Number of Service Setups Customer Orders Machine Hours Inspections Requests Units 3,120 130 260 800 70 7,800 Brown sugar 1,990 190 390 2,200 440 4,975 Powdered sugar 1,990 180 650 1,000 190 4,975 Total 7,100 500 1,300 4,000 700 17,750 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 Total Activity Cost Activity Cost Per Unit White sugar Brown sugar Powdered sugar 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