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 $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 $1,800,000 Machining Machine hours 100,000 300,000 60,000,000 Engineering Engineering hours 50,000 100,000 13,500,000 Packing Packing orders 100,000 400,000 100,000 Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. Setups 30,000 X per setup Machining 150 per machine hour Engineering 90 per engineering hour Packing 0.2 per packing order 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar eBook Calculator Setups Number of setups 300 200 Machining Machine hours $1,800,000 60,000,000 100,000 300,000 Engineering Engineering hours 50,000 100,000 13,500,000 Packing Packing orders 100,000 400,000 100,000 Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. Setups 30,000 X per setup Machining $ 150 per machine hour Engineering 90 per engineering hour Packing 0.2 per packing order 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar. Deluxe 100,000 X per unit Regular 800,000 X per unit Feedback Check My Work 1. Determine the overhead rates by dividing the activity cost by the total number of drivers. 2. Assign costs using the rates in 1 and the drivers per product. Total costs for each product and divide by the number of units