PR 18-4A Activity-Based Product Costing 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: Activity Production Setup Materials handling Inspection Product engineering Total Activity Cost Pool $259,200 55,000 9,750 60,000 123,200 $507,150 The activity bases identified for each activity are as follows: Activity Production Setup Materials handling Inspection Product engineering Activity Base Machine hours Number of setups Number of parts Number of inspection hours 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 Hours Number of Parts Alpha Beta Omega Total Number of Setups 75 165 310 550 1,440 1,080 720 3,240 Units 1,800 1,350 Number of Inspection Hours 400 300 500 1.200 65 80 180 325 Number of Engineering Hours 125 175 140 440 900 4,050 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. Answer + Check Figure: Alpha total activity cost, $179,650 3. Why aren't the activity unit costs equal across all three products since they require the same machine time per unit? 104% T Text Do Collaborate Format Organize View Add Category Insert Table Chart Shape Media Comment Zoom Pr. 18(4)-4A 4 + Sol Sheet Sheet Name Problem 18(4) 4A NAMA: Section: Pr. 18(4)-4A Score: Background Kay Karya Cice de ru] Instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited An asterisk (*) will appear to the right of an incorect entry Duplicate Sheet Delete Sheet 1. Production Setup Material Handling Inspection Engineering Total activity cost + Total activity HASR Activity rate mh Anh artups stup no parts part Insa, hours hour Ang hours hou 2. Actity Cout Beta Activity Rate Activity Base Usage Activity Cast Activity Cout Activity Production Selup Material banding Inspecioni Engineering Total Number of units Activity cost per unit Alpha Activity Activity Base Uongo RNIH mh MPS| parte insp. hours eng. hours Belupe paris ins. hours crg. hours Omas Activity Activity Base Usage Rats mh Blue paris insp. hours eng hours 3. Kay sesyangwer here