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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

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 $389,400 Setup 299,600 Inspection 85,800 Shipping 108,000 Customer service 46,800 Total $929,600 The activity bases identified for each activity are as follows: Activity Activity Base Production Machine hours 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: Machine Hours Number of Setups Number of Inspections Number of Customer Orders Customer Service Requests Units White sugar 2,900 180 220 720 40 7,250 Brown sugar 1,850 270 330 1,980 250 4,625 Powdered sugar 1,850 250 550 900 110 4,625 Total 6,600 700 1,100 3,600 400 16,500 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 $fill in the blank 1 per machine hour Setup $fill in the blank 2 per setup Inspection $fill in the blank 3 per move Shipping $fill in the blank 4 per cust. ord. Customer service $fill in the blank 5 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 $fill in the blank 6 $fill in the blank 7 Brown sugar fill in the blank 8 fill in the blank 9 Powdered sugar fill in the blank 10 fill in the blank 11 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?

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