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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, following data were prepared for this plant: Deluxe Regular 100,000 800,000 Quantity Selling price Unit prime cost $900 $750 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 Activity Cost Setups Number of setups 300 200 Machining Machine hours 100,000 300,000 $2,100,000 76,000,000 13,500,000 Engineering Engineering hours 100,000 50,000 100,000 Packing Packing orders 400,000 200,000 Required: 1. Calculate the overhead rates for each dctivity. If required, carry your answers out to the nearest cont. Setups per setup Machining per machine hour Engineering per engineering hour per packing order Packing 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $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 $2,100,000 Machining Machine hours 100,000 300,000 76,000,000 50,000 100,000 13,500,000 Engineering Packing Required: Engineering hours Packing orders 100,000 400,000 200,000 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. Setups per setup Machining per machilie 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 dollar. Deluxe per unit Regular per unit
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