10 Nov Activity Rates and Activity-Based Product CostingH
Activity Rates and Activity-Based Product CostingHammer 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:DeluxeRegularQuantity100,000800,000Selling price$900$750Unit prime cost$529$483In addition, the following information was provided so that overhead costs could be assigned to each product:Activity NameActivity DriverActivity CostDeluxeRegularSetupsNumber of setups$3,000,000300200MachiningMachine hours91,000,000100,000300,000EngineeringEngineering hours6,700,00050,000100,000PackingPacking orders600,000100,000400,000Required:1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent.Setups$ per setupMachining$ per machine hourEngineering$ per engineering hourPacking$ per packing order2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar.Deluxe$per unitRegular$per unit
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