Please help solve all parts of equation
Instructions Activity Table - Alpha Activity Table - Beta Activity Table - Omega Final Question Instructions 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 $259,200.00 2 Production 3 Setup 55,000.00 4 Material handling 9.750.00 5 Inspection 60,000.00 6 Product engineering 123,200.00 7 Total $507,150.00 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 Instructions Activity Table - Alpha Activity Table - Beta Activity Table - Omega Final Question Instructions 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 1,440 75 65 400 125 1,800 Beta 1,080 165 80 300 175 1.350 Omega 720 310 180 500 140 900 Total 3,240 550 325 1,200 440 4,050 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 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 Instructions Activity Table - Alpha Activity Table - Beta Activity Table - Omega Final Question Activity Table - Alpha Complete the Activity Table for Alpha. 1. Determine the activity rate for each activity. Enter these rates in the Activity Rate columns * 2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with Alpha* *If required, round all per-unit amounts to the nearest cent. Alpha Activity Activity Base Activity Activity Usage Rate = Cost Production 2,592 mh $ Setup $ Material handling $ SA Inspection Product Engineering $ $ Total activity cost $ Number of units $ Activity cost per unit Activity-based product costing. Instructions Activity Table - Alpha Activity Table - Beta Activity Table - Omega Final Question Activity Table - Beta Complete the Activity Table for Beta. 1. Determine the activity rate for each activity. Enter these rates in the Activity Rate columns * 2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with Beta.* *If required, round all per-unit amounts to the nearest cent. Beta Activity Activity Base Activity Activity Usage Rate Cost Production $ S Setup $ Material handling $ Inspection $ Product Engineering $ Total activity cost $ Number of units Activity cost per unit $ Activity-based product costing. Instructions Activity Table - Alpha Activity Table - Beta Activity Table - Omega Final Question Activity Table - Omega Complete the Activity Table for Omega. 1. Determine the activity rate for each activity. Enter these rates in the Activity Rate columns * 2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with Omega.* *If required, round all per-unit amounts to the nearest cent. Omega Activity- Activity Base Activity Activity Usage Rate = Cost Production GA S Setup $ Material handling $ Inspection Product Engineering Total activity cost $ Number of units Activity cost per unit A Instructions Activity Table - Alpha Activity Table - Beta Activity Table - Omega Final Question Final Question X 3. Why aren't the activity unit costs equal across all three products since they require the same machine time per unit? The difference is because the products consume many activities in ratios different from the volume. The difference is due to machine inefficiencies. The difference is due to product cost distortions
