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 $2,000,000

Machining Machine hours 100,000 300,000 80,000,000

Engineering Engineering hours 50,000 100,000 6,000,000

Packing Packing orders 100,000 400,000 100,000

Required:

1. Calculate the overhead rates for each activity. (Round to two decimal places.)

Setups $______ per setup

Machining $______ per machine hour

Engineering $______ per engineering hour

Packing $______ per packing order

2. Calculate the per-unit product cost for each product. (Round to the nearest dollar.)

Deluxe $ _________ per unit

Regular $ ________ per unit