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 conduc an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows: 1 Activity Activity Cost Pool $259,200.00 2 Production 55,000.00 Setup 9.750.00 60,000.00 Material handling 5 Inspection Product engineering 123.200.00 3507,150.00 Total Activity Table - Alpha Activity Table - Beta Activity Table - Omega Instructions The activity bases identified for each activity are as follows: Activity Production Setup Material handling Activity Base Machine hours Number of setups Number of parts Number of inspection hours Number of engineering hours Inspection Will Product engineering The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows Number of Number of Machine Number of Number of Hours Setups Parts Inspection Hours Engineering Hours Units 125 1.800 65 400 Alpha 1.440 75 175 1,350 300 80 Beta 165 1,080 Machine Number of Number of Number of Number of Hours Setups Parts Inspection Hours Engineering Hours Units Alpha 1,440 75 65 400 125 1,800 Beta 1,080 165 80 175 300 1,350 720 Omega 310 180 500 900 140 Total 3.240 550 325 440 1,200 4,050 Each product requires 40 minutes per unit of machine time Required: Complete the Activity Tables for Alpha, Beta and Omega 1. Determine the activity. Zote for each activity 2. Use the activity rates in (t) to determine the total and per unit activity costs associated with all the products 3. Why aren't the activity unit costs oqual across all three products since they require the same machine bime per unt? 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 conduc an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows: 1 Activity Activity Cost Pool $259,200.00 2 Production 55,000.00 Setup 9.750.00 60,000.00 Material handling 5 Inspection Product engineering 123.200.00 3507,150.00 Total Activity Table - Alpha Activity Table - Beta Activity Table - Omega Instructions The activity bases identified for each activity are as follows: Activity Production Setup Material handling Activity Base Machine hours Number of setups Number of parts Number of inspection hours Number of engineering hours Inspection Will Product engineering The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows Number of Number of Machine Number of Number of Hours Setups Parts Inspection Hours Engineering Hours Units 125 1.800 65 400 Alpha 1.440 75 175 1,350 300 80 Beta 165 1,080 Machine Number of Number of Number of Number of Hours Setups Parts Inspection Hours Engineering Hours Units Alpha 1,440 75 65 400 125 1,800 Beta 1,080 165 80 175 300 1,350 720 Omega 310 180 500 900 140 Total 3.240 550 325 440 1,200 4,050 Each product requires 40 minutes per unit of machine time Required: Complete the Activity Tables for Alpha, Beta and Omega 1. Determine the activity. Zote for each activity 2. Use the activity rates in (t) to determine the total and per unit activity costs associated with all the products 3. Why aren't the activity unit costs oqual across all three products since they require the same machine bime per unt
