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:

In addition, the following information was provided so that overhead costs could be assigned to each product:

Required:
1. Calculate the overhead rates for each activity.
2. Calculate the per-unit product cost for eachproduct.

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Quantity Selling price Unit prime cost Deluxe 100,000 $900 $529 Regular 800,000 $750 $483 Activity Name Setups Machining Engineering Packing Activity Driver Number of setups Machine hours Engineering hours Packing orders Activity Cost ($) 2,000,000 80,000,000 6,000,000 1,000,000 Regular 200 300,000 100,000 100,000 400,000 Deluxe 300 100,000 50,000