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 $431,200 Setup 117,000 Inspection 90,000 Shipping 140,600 Customer service 48,000 Total $826,800 The activity bases identified for each activity are as follows: Activity Activity Base Production Machine hours Setup Number of setup Inspection Number of inspections Shipping 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: Customer Number of Number of Number of Service Units Setups Inspections Customer Orders Machine Hours Requests White sugar 3,390 80 240 760 403,475 Brown DUO 2160 110 350 2,090 250 5.400 White sugar Brown sugar UCEVIC Machine Hours Setups Inspections Customer Orders Requests 3,390 80 240 760 40 8,475 2,160 110 360 2,090 250 5,400 Powdered sugar 2,150 110 600 950 110 5,375 Total 7,700 300 1,200 3,800 400 19,250 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 56 per machine hour Setup 390 per setup Inspection 75 per move Shipping 37 per cust. ord. Customer service 120 per customer service request 2. Determine the total and per-unit activity cost for all three products. Total Activity Cost Activity Cost Per Unit White sugar 271,960 32.09 Brown sugar Powdered sugar Check My Work