Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of...
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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: Deluxe Regular Quantity Selling price Unit prime cost 100,000 800,000 $900 $750 $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 Co Setups Number of setups 300 200 $2,150,0 Machining Machine hours 100,000 300,000 40,000,0 Engineering Engineering hours 50,000 100,000 7,500,0 Packing Packing orders 100,000 400,000 200,0 Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. Setups Machining per setup per machine hour Engineering per engineering hour per packing order Packing 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar. Deluxe Regular per unit per unit 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: Deluxe Regular Quantity Selling price Unit prime cost 100,000 800,000 $900 $750 $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 Co Setups Number of setups 300 200 $2,150,0 Machining Machine hours 100,000 300,000 40,000,0 Engineering Engineering hours 50,000 100,000 7,500,0 Packing Packing orders 100,000 400,000 200,0 Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. Setups Machining per setup per machine hour Engineering per engineering hour per packing order Packing 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar. Deluxe Regular per unit per unit
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