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

$237,552.00

3

Setup

93,660.00

4

Material handling

10,500.00

5

Inspection

53,185.00

6

Product engineering

156,755.00

7

Total

$551,652.00

Theactivity basesidentified for each activity are as follows:

ActivityActivity BaseProductionMachine hoursSetupNumber of setupsMaterial handlingNumber of partsInspectionNumber of inspection hoursProduct engineeringNumber of engineering hoursThe activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows:

MachineNumber ofNumber ofNumber ofNumber ofHoursSetupsPartsInspection HoursEngineering HoursUnitsAlpha1,00062824581331,137Beta7331211472701871,057Omega388237271239215474Total2,1214205009675352,668Each product requires 40 minutes per unit of machine time.

Required:Complete the Activity Tables for Alpha, Beta and Omega.1.Determine theactivity ratefor 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.