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Business, 06.06.2020 22:59 twistedhyperboles

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 $500,000Setup $144,000Inspection $44,000Shipping $115,000Customer service $84,000Total $887,000The activity bases identified for each activity are as follows:. Activity Activity BaseProduction Machine hoursSetup 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 Number of Number of Number of Customer Service Units Hours Setups Inspections Customer Orders Requests White Sugar 5,000 85 220 1,150 60 10,000Brown Sugar 2,500 170 330 2,600 350 5,000Powdered Sugar 2,500 195 550 2,000 190 5,000Total 10,000 450 1.100 5,750 600 20,000Each product requires 0.5 machine hour per unit. Required:1. Determine the activity rate for each activity.2. Determine the total and per-unit activity cost for all three products.

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Sweet Sugar Company manufactures three products (white sugar, brown sugar, and powdered sugar) in a...
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