Reference no: EM131594836

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:

Activity	Activity Costs
Production	$247,500
Setup	48,000
Inspection	12,500
Shipping	69,300
Customer service	27,600
Total	$404,900

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	Number of Customer Service Requests	Units
White sugar	2,000	50	100	410	25	8,000
Brown sugar	1,250	70	160	1,100	200	5,000
Powdered sugar	1,250	80	240	800	120	5,000
Total	4,500	200	500	2,310	345	18,000

Each product requires 0.25 machine hour per unit.

Required:

1. Determine the activity rate for each activity.

2. Determine the total and per-unit activity costs for all three products. Round "Activity cost per unit" answers to two decimal places.