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And costing Pure Care Suger Company manufactures three groducts (white sugar, brown sugar, and powdered sugar) in a continuous production process Saner management at the
And costing Pure Care Suger Company manufactures three groducts (white sugar, brown sugar, and powdered sugar) in a continuous production process Saner management at the controlar to conduct activitsed costing study. The controller identified the amount of factory overhead required by the critical activities of the orgontration as follow Activity Activity Costs Production $247,500 Setup 48,000 Inspection 12,500 Shipping 69,300 Customer service 27,000 Total 5404,000 The activity bases dentified for each activity are as follows Activity Activity Base Production Machine hours Setiap Number of stups Inspection Number of inspection Shipping Number of customer orders Customer Number of estomer service rvice The activity base sage quantities and units produced for the three products were determined from corporate records and are as follom Number of Number of Customer Machine Number or Number of Customer Service Hours Setupe Unita Inspections Orders Requests White SUM 2.000 50 100 410 25 3,000 Previous Machine Hours Number of Setups Number of Inspections Number of Customer Orders Customer Service Requests Units White sugar 50 100 2,000 1,250 410 25 Brown sugar 70 160 1,100 200 Powdered sugar 1,250 80 240 800 8,000 5,000 5,000 18,000 120 Total 4,500 200 500 2,310 345 Each product requires 0.25 machine hour per unit. Required: 1. Determine the activity rate for each activity. Activity Rate Production /mh Setup /setup Inspection /insp Shipping /cust. ord. Customer Service /rea. 2. Determine the total and per-unit activity costs for all three products. Round "Activity cost per unit" answers to two decimal places White Sugar Brown Sugar Powdered Sugar 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? Check Mark
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