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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
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 100,000 800,000 Selling price 5900 $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 300 200 $1,950,000 Machining Machine hours 100,000 300,000 56,000,000 Engineering Engineering hours 50,000 100,000 6,000,000 Packing Pocking orders 400,000 200,000 Required: 1. Calculate the overhead rates for each activity. It required, carry your answers out to the nearest cent Setups X per setup Machining X per machine hour Engineering 40 per engineering houn Packing X per packing order 100,000 Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. Setups X per setup Machining X per machine hour Engineering 40 per engineering hour Packing X per packing order 2. Calculate the per-unit product cost for each product, Round your answers to the nearest whole dollar, X per unit Deluxe Regular X per unit Feedback
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