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ActivityBudgeted Activity CostProductionSetupInspectionShippingCustomer ServiceTotal$ 5 3 2 , 5 0 0 1 8 8 , 5 0 0 1 2 2 , 2 0 0

ActivityBudgeted Activity CostProductionSetupInspectionShippingCustomer ServiceTotal$532,500188,500122,200112,00033,600$988,800The activity bases identified for each activity are as follows:ActivityActivity BaseProductionMachine hoursSetupNumber of setupsInspectionNumber of inspectionsShippingNumber of customer ordersCustomer Service Number of customer service requestsThe activity-base usage quantities and units produced for the three products were determined from corporate records and are as folloMachineHoursNumber ofSetupsNumber ofInspectionsNumber of Customer Customer ServiceOrdersRequestsUnitsWhite sugar3,120130260800307,800Brown sugar1,9901903902,2001904,975Powdered sugar1,9901806501,000804,975Total7,1005001,3004,00030017,750Each 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.Production75per machine hourSetup$377per setupInspection$94per inspection hourShipping$28per cust. ord.Customer service112per customer service request2. Determine the total and per-unit activity cost for all three products.Total Activity CostActivity Cost Per UnitWhite sugar$333,210Brown sugar340,420Powdered sugar315,170

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