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 Activity Activity Cost Pool 2 Production $278,280.00 82,677.00 11.110.00 3 Setup 4 Material handling 5 Inspection 6 Product engineering 54.918.00 144.361.00 7 Total $571,346.00 The activity bases identified for each activity are as follows: Activity Production Activity Base Machine hours Number of setups Number of parts Setup Material handling Inspection Product engineering 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 1,057 64 84 475 113 1,374 Beta 861 109 164 317 172 935 Omega 401 208 257 225 218 488 Total 2,319 381 505 1,017 503 2,797 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. 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 Alpha Activity Activity Base Activity Activity Usage Rate Cost Production $ $ Setup $ Material handling $ >> Inspection $ Product Engineering $ Total activity cost $ Number of units Activity cost per unit $ Complete the Activity Table for Beta. 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. Beta Activity- Activity Base Activity Activity Usage Rate Cost Production $ Setup $ Material handling $ Inspection $ Product Engineering $ Total activity cost $ Number of units Activity cost per unit $ 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. Omega Activity Activity Base Activity Activity Usage Rate Cost Production > $ $ Setup $ Material handling $ Inspection $ Product Engineering $ Total activity cost $ Number of units Activity cost per unit $
