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: Setups Quantity Selling price $900 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 Activity Cost Setups Number of setups Machining Engineering Packing Required: Machining Engineering $ Deluxe $ 100,000 $ Machine hours Regular 800,000 Engineering hours Packing orders $750 Deluxe per setup per machine hour per engineering hour 300 100,000 50,000 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. 100,000 Regular 200 300,000 100,000 400,000 $2,050,000 56,000,000 9,000,000 400,000 Previous Next G

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: In addition, the following information was provided so that overhead costs could be assigned to each product: 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 Engineering per engineering hour