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 Budgeted Activity Cost Production Setup Inspection Shipping Customer Service Total $500,000 144,000 44,000 115,000 84,000 $887,000 The activity bases identified for each activity are as follows: Activity Activity Base Production Machine hours Setup Number of setups Inspection Shipping Number of inspections Number of customer orders Customer Service Number of customer service requests Inspection Shipping Number of inspections Number of customer orders. 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: Number of Customer Machine Hours Number of Setups Number of Inspections Customer Service Units Orders Requests White sugar 5,000 85 220 1,150 60 10,000 Brown sugar 2,500 170 330 2,600 350 5,000 Powdered sugar 2,500 195 550 2,000 190 5,000 Total 10,000 450 1,100 5,750 600 20,000 Each product requires 0.5 machine hour per unit. Required: If required, round all per unit amounts to the nearest cent. 1. Determine the attivity rate for each activity. Production Setup per machine hour per setup