Instructions Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) 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: 1 2 Production 3 Setup 4 Material handling 5 Inspection 6 Product engineering 7 Total Activity Activity Cost Pool $270,840.00 98,945.00 10,604.00 44,100.00 139,380.00 $563,869.00 The activity bases identified for each activity are as follows: Activity Production Setup Activity Base Machine hours Number of setups Material handling Inspection Product engineering Number of parts Number of inspection hours Number of engineering hours The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: Machine Number of Number of Number of Number of Hours Setups Parts Inspection Hours Engineering Hours Units Alpha 1,061 55 55 84 467 130 1,341 Beta 767 125 158 281 183 927 Omega 392 205 240 232 192 542 Total 2,220 385 482 980 505 2,810 Each product requires 40 minutes per unit of machine time. Required: Complete the Activity Tables for Alpha, Beta and Omega. 1. Determine the activity rate for each activity.* 2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with all three products.* 3. Why aren't the activity unit costs equal across all three products since they require the same machine time per unit? *If required, round all per-unit amounts to the nearest cent. Activity Table - Alpha Complete the Activity Table for Alpha. 1. Determine the activity rate for each activity. Enter these rates in the Activity Rate columns.* 2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with Alpha.* *If required, round all per-unit amounts to the nearest cent. Activity- Activity Base Production Alpha Activity Usage X Rate $ Setup parts Material handling $ insp. hours Inspection Product Engineering Total activity cost Number of units Activity cost per unit eng. hours mh setups $ $ Activity Cost Activity Table - Beta Complete the Activity Table for deta. 1. Determine the activity rate for each activity. Enter these rates in the Activity Rate columns.* 2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with Beta.* *If required, round all per-unit amounts to the nearest cent. Activity- Activity Base Usage x Production Setup Material handling Inspection Product Engineering Total activity cost Number of units Activity cost per unit $ $ $ $ Beta Activity Activity Rate Cost Activity Table - Omega Complete the Activity Table for Omega. 1. Determine the activity rate for each activity. Enter these rates in the Activity Rate columns.* 2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with Omega.* *If required, round all per-unit amounts to the nearest cent. Activity- Omega Activity Base Activity Usage X Rate Production Setup Material handling Inspection Product Engineering Total activity cost Number of units Activity cost per unit $ $ Activity Cost