Activity-Based Product Costing Davis Company produces two hair dryers: regular and deluxe. The company has four...

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Activity-Based Product Costing Davis Company produces two hair dryers: regular and deluxe. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Regular Deluxe Total Units produced 150,000 450,000 Prime costs $11,100,000 $50,400,000 $61,500,000 Machine hours 150,000 750,000 900,000 Engineering hours 400 3,600 4,000 Receiving orders 200 600 800 Inspection hours 1,000 2,000 3,000 Overhead costs: Machining $12,600,000 Engineering - 1,800,000 Receiving 240,000 Inspecting products 600,000 Activity-Based Product Costing Davis Company produces two hair dryers: regular and deluxe. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Regular Deluxe Total Units produced 150,000 450,000 Prime costs $11,100,000 $50,400,000 $61,500,000 Machine hours 150,000 750,000 900,000 Engineering hours 400 3,600 4,000 Receiving orders 200 600 800 Inspection hours 1,000 2,000 3,000 Overhead costs: Machining $12,600,000 Engineering - 1,800,000 Receiving 240,000 Inspecting products 600,000