The furnace operation is part of the total process for each of these three products. Thus, for example, 4.0 of the 12.0 hours required to process High Grade steel are associated with the furnace Instructions 1. Determine the unit contribution margin for each product. 2. Provide an analysis to determine the relative product profitability, assuming that the furnace is a bottleneck PR 25-7A Activity-based costing Pure Cane 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: OBJ. 4 cost Activity Costs Setup Inspection Shipping Customer service $247,500 48,000 12,500 69,300 27,600 $404,900 Total The activity bases identified for each activity are as follows: Activity Base Machine hours Number of setups Number of inspections Number of customer orders Number of customer service requests Activity Setup Shipping Customer service The activity-base usage quantities and units produced for the three products were determined from corporate records as follows: Number of Number of Customer Machine Number of Number of Customer Service Setups 50 70 80 200 Inspections 100 160 240 Orders 410 1,100 800 Requests Units White sugar Brown sugar Powdered sugar 1,250 1,250 4,500 25 200 120 8,000 5,000 5,000 18,000 500 2310 345 Total Each product requires 0.25 machine hour per unit. Instructions 1. Determine the activity rate for each activity. 2. Determine the total and per-unit activity costs for all three products. 3. Why aren't the activity unit costs equal across all three products since they require the same machine time per unit