Question
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
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: 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 $1,800,000 Machining Machine hours 100,000 300,000 76,000,000 Engineering Engineering hours Packing Packing orders 50,000 100,000 100,000 10,500,000 400,000 300,000 Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent Setups per setup Machining S per machine hour Engineering per engineering hour Packing per packing order the nearest whole dollar.
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