Question
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
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 $1,750,000 Machining Machine hours 100,000 300,000 76,000,000 Engineering Engineering hours 50,000 100,000 7,500,000 Packing Packing orders 100,000 400,000 400,000 Required:
1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent.
A. $fill in the blank per setup Machining?
B. $fill in the blank per machine hour Engineering?
C. $fill in the blank 3 per engineering hour Packing?
D. $fill in the blank 4 per packing order
2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar.
E. Deluxe $fill in the blank 5 per unit Regular?
F. $fill in the blank 6 per unit?
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