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:

DeluxeRegularQuantity100,000800,000Selling price$900$750Unit prime cost$529$483

In addition, the following information was provided so that overhead costs could be assigned to each product:

Activity NameActivity DriverDeluxeRegularActivity CostSetupsNumber of setups300200$2,000,000MachiningMachine hours100,000300,00080,000,000EngineeringEngineering hours50,000100,0006,000,000PackingPacking orders100,000400,000100,000

Required:

1.Calculate the overhead rates for each activity. (Round to two decimal places.)

Setups$per setupMachining$per machine hourEngineering$per engineering hourPacking$per packing order

2.Calculate the per-unit product cost for each product. (Round to the nearest dollar.)

Deluxe$per unitRegular$per unit