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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 $750 Selling price $900 Unit prime cost 5529 5483 In addition, the following information was provided so that overhead costs could be assigned to each product Deluxe Regular Activity Driver Activity Cost Activity Name 300 200 $1,950,000 Setups Number of setups 100,000 300,000 48,000,000 Machining Machine Hours 50,000 100,000 Engineering Engineering hours Packing orders 6,000,000 300,000 400,000 Packing 100,000 Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cont Setups per setup Machining per machine hour Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent.
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