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OB).4 PR 25-7A Activity-based costing Pure Cane Sugar Company manufactures three products (white sugar, brown sugar, and powdered sugar) in a continuous production process. Senior

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OB).4 PR 25-7A Activity-based costing Pure Cane Sugar Company manufactures three products (white sugar, brown sugar, and powdered sugar) 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: n sugar ity cost, Activity Costs 247,500 Activity Production cel 48,000 12,500 69,300 27,600 $404,900 Customer servicee Total The activity bases identified for each activity are as follows: Activity Base Activity Production Setup Inspectiorn Shipping Customer service Number of setups Number of inspections Number of customer orders Number of customer service requests The activity-base usage quantities and units produced for the three products were determined from corporate records as follows: Number of Customer Service Number of Orders 410 1,100 Machine Number of Number of Customer Requests Units Hours 2,000 1,250 1,250 4,500 Inspections 100 160 240 500 8,000 5,000 5,000 18,000 White sugar Brown sugar Powdered sugar 25 200 120 345 50 70 80 200 800 Total 2,310 Each product requires 0.25 machine hour per unit. Instructions 1. Determine the activity rate for each activity 2. Determine the total and per-unit activity costs for 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? Custarer service Actvity cast O Type here to search

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