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	Budgeted Activity Cost
Production	$441,000
Setup	152,400
Inspection	106,600
Shipping	121,800
Customer Service	72,600
Total	$894,400

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:

Line Item Description	Machine Hours	Number of Setups	Number of Inspections	Number of Customer Orders	Customer Service Requests	Units
White sugar	3,080	100	260	840	60	7,700
Brown sugar	1,960	150	390	2,310	380	4,900
Powdered sugar	1,960	150	650	1,050	160	4,900
Total	7,000	400	1,300	4,200	600	17,500

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.

Activity	Amount
Production	63
Setup	381
Inspection	82
Shipping	29
Customer service	121

2. Determine the total and per-unit activity cost for all three products.

Line Item Description	Total Activity Cost	Activity Cost Per Unit
White sugar
Brown sugar
Powdered sugar

ONLY QUESTION 2