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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
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 $2,250,000 Machining Machine hours 100,000 300,000 48,000,000 Engineering Engineering hours 50,000 100,000 10,500,000 Packing Packing orders 100,000 400,000 200,000 Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. Setups 4,500 per setup Machining $ 120 per machine hour Engineering $ 70 per engineering hour Packing 0.4 per packing order 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar. Deluxe per unit Regular per unit 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: 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 $2,250,000 Machining Machine hours 100,000 300,000 48,000,000 Engineering Engineering hours 50,000 100,000 10,500,000 Packing Packing orders 100,000 400,000 200,000 Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. Setups 4,500 per setup Machining 120 per machine hour Engineering 70 per engineering hour
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