Sweet 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: Activity Production Setup Inspection Shipping Customer service Activity Production Total The activity bases identified for each activity are as follows: Activity Base Budgeted Activity Cost White sugar Brown sugar Dowdered cunar Machine hours Number of setups Number of inspections Number of customer orders Setup Inspection Shipping Customer service Number of customer service requests The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: Machine Hours 3,170 2,020 2010 $388,800 225,000 102,200 154,000 62,000 $932,000 Number of Setups 150 230 220 Number of Inspections 420 700 Number of Customer Orders 880 2,420 1 100 Customer Service Requests Units 50 7,925 320 5,050 130 5.025

Sweet 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 identificd the amount of factory overhead required by the critical activities of the organization as follows: The activity bases identified for each activity are as follows: If required, round all per unit amounts to the nearest cent. 1. Determine the activitv mate fror asirh arthisit puest 2. Determine the total and per-unit activity cost for all three products. 3. Why arent the activity unit costs equal across all three products since they require the same machine time per unit? The unit costs are different because the products consume many activities in ratios different from the