1. Determine the activity rate for each activity. Activity Rate Production /mh Setup /setup Inspection /insp. Shipping /cust. ord. Customer Service /req. 2. Determine the total and per-unit activity costs for all three products. Round "Activity cost per unit" answers to two decimal places. White Sugar Brown Sugar Powdered Sugar Total activity cost

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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ule 4 Assessments - ACG20 X
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keAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false
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Number of
Customer
Machine
Number of
Number of
Customer
Service
Hours
Setups
Inspections
Orders
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.
Activity Rate
Production
/mh
Setup
/setup
Inspection
/insp.
Shipping
/cust. ord.
Customer Service
/req.
2. Determine the total and per-unit activity costs for all three products. Round "Activity cost per unit" answers to two decimal places.
White Sugar
Brown Sugar
Powdered Sugar
Total activity cost
Activity cost per unit
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Transcribed Image Text:ule 4 Assessments - ACG20 X * CengageNOWv2 | Online teachin x + keAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Number of Customer Machine Number of Number of Customer Service Hours Setups Inspections Orders 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. Activity Rate Production /mh Setup /setup Inspection /insp. Shipping /cust. ord. Customer Service /req. 2. Determine the total and per-unit activity costs for all three products. Round "Activity cost per unit" answers to two decimal places. White Sugar Brown Sugar Powdered Sugar Total activity cost Activity cost per unit Check My Work Previous All work saved. Save and Exit Submit Assignment for Gradim 10:06 78°F Clear A 4) 9/9/2
4 Assessments - ACG20 X
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Assignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false
A eBook
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
Number of customer service
service
requests
The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows:
Number of
Number of
Customer
Check My Work
( Previous
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Transcribed Image Text:4 Assessments - ACG20 X * CengageNOWv2 | Online teachi x Assignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false A eBook 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 Number of customer service service requests The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: Number of Number of Customer Check My Work ( Previous All work saved. Save and Exit Submit Assignment for Grading 10:06 PM 78°F Clear 9/9/2021
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