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 $100,000800,000$

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 $300200$ $$2,250,000$

Machining Machine hours $100,000300,00048,000,000$

Engineering Engineering hours $50,000100,00013,500,000$

Packing Packing orders $100,000400,000300,000$

Required:

These are the Calculated overhead rates for each activity.

Setups $4,500$ per setup

Machining $120$ per machine hour

Engineering $90$ per engineering hour

Packing $0\mathrm{.}60$ per packing order

$1.$ Calculate the per$-$unit product cost for each product. Round your answers to the nearest whole dollar.

Deluxe What is the per unit

Regular What is the per unit

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$1.$ 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.