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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

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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 100,000 800,000 $900 $750 Unit prime cost 5529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Setups Number of setups 300 200 Machine hours 100,000 Machining Engineering Packing Activity Cost $2,000,000 40,000,000 10,500,000 200,000 Engineering hours Packing orders 300,000 100,000 400,000 50,000 100,000 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 Packing per packing order 2. Calculate the per unit product cost for each product. Round your answers to the nearest Whole dolar Deluxe Regular Quantity 100,000 800,000 Selling price Unit prime cost $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 Cost Setups Number of setups 300 200 $2,000,000 Machining Machine hours 100,000 300,000 40,000,000 Engineering Engineering hours 50,000 100,000 10,500,000 Packing Packing orders 100,000 400,000 200,000 Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent, Setups per setup Machining per machine hour 1 Engineering per engineering hour Packing per packing order 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar Deluxe per unit Regular per unit

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