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Activity Hates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe
Activity Hates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Quantity Selling price Unit prime cost Deluxe Regular 100,000 800,000 $900 $529 $750 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost Setups Number of setups 300 200 $2,000,000 Machining Machine hours 100,000 300,000 80,000,000 Engineering Engineering hours 50,000 100,000 6,000,000 Packing Packing orders 100,000 400,000 100,000 Required: 1. Calculate the overhead rates for each activity. (Round to two decimal places.) Setups 4,000 per setup Machining Engineering Packing $ 130 X per machine hour 0.90 50 X per engineering hour X per parking order
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