Activity Rates 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:

Line Item Description Deluxe Regular

Quantity $100,000800,000$

Selling price $$900$ $$750$

Unit prime cost $$529$ $$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 $300200$ $$2,200,000$

Machining Machine hours $100,000300,00056,000,000$

Engineering Engineering hours $50,000100,00013,500,000$

Packing Packing orders $100,000400,000100,000$

Required:

$1.$ Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent.

Line Item Description Overhead rate

Setups $fill in the blank $1$ per setup

Machining $fill in the blank $2$ per machine hour

Engineering $fill in the blank $3$ per engineering hour

Packing $fill in the blank $4$ per packing order

$2.$ Calculate the per$-$unit product cost for each product. Round your answers to the nearest whole dollar.

Line Item Description Per$-$unit product cost

Deluxe $fill in the blank $5$per unit

Regular $fill in the blank $6$per unit