Obj. 4 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: Details A list of activities and activity cost pools is given. They are as follows: Production, \$259,200; Setup, 55,000; Materials handling, 9,750; Inspection, 60,000; Production engineering, 123,200. These are added to yield a total of $507,150. A single rule appears below 123,200 and a double rule below $507,150. The activity bases identified for each activity are as follows: The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: The activity-base usage quantities and units produced for three products are given in a seven-column table. The first column is untitled, and the headings for the other columns are Machine Hours, Number of Setups, Number of Parts, Number of Inspection Hours, Number of Engineering Hours, and Units. For the Alpha product, machine hours is 1,440, number of setups is 75 , number of parts is 65 , number of inspection hours is 400 , number of engineering hours is 125 , and units is 1,800 . For the Beta product, machine hours is 1,080 , number of setups is 165 , number of parts is 80 , number of inspection hours is 300 , number of engineering hours is 175 , and units is 1,350 . For the Omega product, machine hours is 720 , number of setups is 310 , number of parts is 180 , number of inspection hours is 500, number of engineering hours is 140 , and units is 900 . A single rule appears below all the numbers on this row. The total machine hours is 3,240, total number of setups is 550 , total number of parts is 325 , total number of inspection hours is 1,200 , total number of engineering hours is 440, and total units is 4,050. A double rule appears below all the numbers on this row. Each product requires 40 minutes per unit of machine time. INSTRUCTIONS 1. Determine the activity rate for each activity. 2. Determine the total and per-unit activity cost for all three products. Round to nearest cent. 3. Why aren't the activity unit costs equal across all three products since they require the same machine time per unit