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Hawaiian Sugar Company manufactures three products (white sugar, brown sugar, and powdered sugar) in a continuous production process. Senior management has asked the controller to
Hawaiian 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: The activity bases identified for each activity are as follows: The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: Each product requires 0.4 machine hour per unit. Required: 1. Determine the activity rate for each activity. If required, round your answers to two decimal places. Activity Rate Production ? $ /mh Setup ? $ /setup Inspection ? $ /insp. Shipping ? $ /cust. ord. Customer Service ? $ /req. 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? The input in the box below will not be graded, but may be reviewed and considered by your instructor
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