Activity Based Product Corting Sweet Sugar Company Manufactures Three Products White Sugar Brown Sup And Powdered Sug 1 (25.88 KiB) Viewed 40 times
Activity Based Product Corting Sweet Sugar Company Manufactures Three Products White Sugar Brown Sup And Powdered Sug 2 (26.45 KiB) Viewed 40 times
Activity-Based Product Corting Sweet Sugar Company manufactures three products (white sugar, brown sup, and powdered sugat) in a continuous production process. Senior management has asked the controller to conduct an activity based costing stuty. The controller identified the amount of factory overhead required by the critical activities of the organization as Activity Budgeted Activity Cost Production $502,500 112,500 Inspection 111.500 Shipping 145,200 Customer service 38.400 3910400 The activity denied for each stress Activity Activity Base Production Machine hours Setup Number of setup Inspection Number of inspections Shine Number of customer Customer service Number of customer service requests The activity base sage Guantities and units produced for the three products were determined from corporate records and are as follows Customer Number of Number of Number of Service Setups Machine Hours Requests Units White 3.300 360 30 250 Brown sugar 2.100 110 390 2.40 190 5.250 21 Inspection Customer Orders
GO GO GO GO Number of Service Setups Customer Orders Machine Hours Inspection Requests Units WS 2,300 30 245 30 3,250 BOUGH 2.100 110 390 2,420 1905,250 Powdered Su 2,100 110 650 1.100 80 5.250 Total 7.500 300 1,300 4,400 300 18,750 Each product requires 0.2 machine her perut Required: It required, round all per unit amounts to the nearest cent. 1. Determine the activitate for each cov Production per machine hour Set per setup Inspection Demove Shipping ser custod Customer service per customer service request 2. Determine the total and put activity cost for the products Total Activity Cost Activity Cost Per Unit GO White Sugar Brown Powdered sugar 3. Why aren't the activity unit costs equal o als het products since they require the same machine time per unit? The it costs are different because the products consume many activities in ratios oferent from the
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