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Saeed Sugar Czompany manufactures three products (white super, bezan sugar, and powdered sugar) in a rzenfimunus prction process. Senior management has woked the controller
Saeed Sugar Czompany manufactures three products (white super, bezan sugar, and powdered sugar) in a rzenfimunus prction process. Senior management has woked the controller to conduct an activity-hand creding study. The contrailer identified the amount of factory overhead required by the critical activities of the organization as follows: Activity Production Scoup Inspection Budgeted Activity Cost $383,400 162.800 Shipping Customer service Total 73.000 114,700 66.500 $500.100 The activity bases identified for each activity are as follows: Activity Activity Base Production Machine hours Setup Inspection Shipping Number of setups Number of inspections Number of customer Customer service Number of curre The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: Number of Sulup Machine Hours Number of Inspections Number of Customer Crslurs Customer Service Requests Units White sugar 3,120 100 Brown sig 1,990 150 200 300 740 2,040 50 7,000 320 4,975 Powdered sugar 1,990 150 500 920 130 4,975 Total 7,100 400 1,000 3,700 500 17,750 Each product requires 0.9 machine hour per unit. Required: If required, round all per unit amounts to the nearest cent. 1. Determine the activity rate for each activity, Production Setup Inspection Shipping machine hour per setup Der move Customer service per cust, ord. per customer service request 2. Determine the total and per unit activity cost for all three products. White sugar Total Activity Cost Activity Cost Per Unit 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 units are different because the products consume many activities in nation different from the
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