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 $375,200 Setup 267,400 Inspection 90,000 Shipping 104,400 Customer service 79,800 Total $916,800 The activity bases identified for each activity are as follows: Activity Activity Base Production Machine hour's Setup Number of setups 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 Customer Orders Machine Hours Inspections Requests Units white sugar 2,950 180 240 720 60 7,375 Brown sugar 1,880 270 360 1,980 380 4,700 Powdered sugar 1,870 250 600 900 160 4,675 Total 6,700 700 1,200 3,600 600 16,750 Setups 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 $ per machine hour Setup per setup Inspection per move Shipping $ per cust. ord. Customer service $ 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 $ Brown sugar 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 unit costs are different because the products consume many activities in ratios different from the