Mello manufacturing company is a diversified manufacturer that manufactures three products (alpha,beta, and olmega) 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:
Determine the activity rate for each activity
Use the activity rates to determine the total and per unit activity costs associated with all three products.
Why arent the unit costs equal across all three products since they require the same machine time per unit?
rassignment-take&inp : L eBook s Activity Table-Alpha Activity Table - Beta Actlvity Table - Omega Final Question Instructions Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in a continuous production process. Serior management ha activity-based costing study. The controller identified the amount of factory overhead required by the critical activithes of the organization as follows Activity Cost Pool Activity 2 Production Setup 4Material handling s Inspection 6 Product enigineering 7Total $259,200.00 55,000.00 9,750.00 60,000.00 123,200.00 $507,150.00 The activity bases identified for each activity are as follows Activity Base Machine hours Number of setups Activity Setup Check My Work Activity Table -Alpha Activity Table - Beta Activity Table-Omega Final Question Instructions The activity bases identified for each activity are as follows Activity Production Setup Material handlingNumber of parts Inspection Product engineering Number of engineering hours Activity Base Machine hours Number of setups Number of inspection 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 cf Parts Inspection Hours Engineering Hours Units 1,800 1.350 Hours Setups 125 Alpha 1.440 Beta 1,080165 Omega 720 310 Total 3,240 550 75 175 180 140 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 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 rassignment-take&inp : L eBook s Activity Table-Alpha Activity Table - Beta Actlvity Table - Omega Final Question Instructions Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in a continuous production process. Serior management ha activity-based costing study. The controller identified the amount of factory overhead required by the critical activithes of the organization as follows Activity Cost Pool Activity 2 Production Setup 4Material handling s Inspection 6 Product enigineering 7Total $259,200.00 55,000.00 9,750.00 60,000.00 123,200.00 $507,150.00 The activity bases identified for each activity are as follows Activity Base Machine hours Number of setups Activity Setup Check My Work Activity Table -Alpha Activity Table - Beta Activity Table-Omega Final Question Instructions The activity bases identified for each activity are as follows Activity Production Setup Material handlingNumber of parts Inspection Product engineering Number of engineering hours Activity Base Machine hours Number of setups Number of inspection 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 cf Parts Inspection Hours Engineering Hours Units 1,800 1.350 Hours Setups 125 Alpha 1.440 Beta 1,080165 Omega 720 310 Total 3,240 550 75 175 180 140 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 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