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Number of Number of * Inspections Customer Orders 180 Customer Number of Service Requests Units 760 60 7,475 2,090 380 4,750 950 160 4,775 3,800

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Number of Number of * Inspections Customer Orders 180 Customer Number of Service Requests Units 760 60 7,475 2,090 380 4,750 950 160 4,775 3,800 600 17,000 Machine Hours White sugar 2,990 100 Brown sugar 1,900 150 Powdered sugar 1,910 150 Total 6,800 400 Each product requires 0.9 machine hour per unit. 270 450 900 Required: If required, round all per unit amounts to the nea. 1. Determine the activity rate for each activity. Production 58 per machine hour Setup 423 per setup Inspection 77 per move Shipping 37 per cust. ord. Customer service $ 116 per customer service request 2. Determine the total and per-unit activity cost for all three products. Total Activity Cost Activity Cost Per Unit White sugar $264,660 1 x Brown sugar Powdered sugar 3. Why aren't the activity unit costs equal across all three products since they require the same machine time per unit? The unit costs are different because the products consume many activities in ratios different from the volume Check My Work

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