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	$251,598.00
3	Setup	92,035.00
4	Material handling	10,736.00
5	Inspection	49,833.00
6	Product engineering	136,230.00
7	Total	$540,432.00

The activity bases identified for each activity are as follows:

Activity	Activity Base
Production	Machine hours
Setup	Number of setups
Material handling	Number of parts
Inspection	Number of inspection hours
Product engineering	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

970

63

84

489

123

1,354

Beta

802

123

138

272

170

1,044

Omega

435

209

266

256

185

452

Total

2,207

395

488

1,017

478

2,850

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 arent 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. Alpha, Beta and Omega Tables needed