PR 18-4A Activity-based product costing Obj. 4 2. Alpha total activity Mello Manufacturing Company is a diversified manufacturer that manufactures three products cost, $160,450 (Alpha, Beta, and Omega) in a continuous production process. Senior n 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: EXCEL TEMPLATE Activity Production Setup Material handling Inspection Product engineering Total Activity Cost Pool $259,200 55.000 9.750 60,000 123,200 $507,150 The activity bases identified for each activity are as follows: Activity Production Setup Material handling Inspection Product engineering Activity Base Machine hours Number of setups Number of parts Number of inspection hours Number of engineering hours (Continued) three products were deter Chapter 18 Activity-Based Costing The activity-base usage quantities and units produced for the three pri mined from corporate records and are as follows: Number of Inspection Hours Number of Engineerin Units Number of Number of Parts Machine Setups Hours 125 175 1,800 Hours 65 400 300 1.350 80 1,440 1,080 500 165 310 180 Alpha Beta Omega Total 720 3,240 1,200 325 550 Each product requires 40 minutes per unit of machine time. Instructions 1. Determine the activity rate for each activity. 2. Determine the total and per-unit activity cost for all three products. Round to nearest cent. 3. Why aren't the activity unit costs equal across all three products since they require the same machine time per unit