Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of...

Transcribed Image Text:

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: Quantity Selling price Unit prime cost Deluxe Regular 100,000 800,000 $900 $750 $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 $2,150,000 Machining Machine hours 100,000 300,000 68,000,000 Engineering Engineering hours Packing Packing orders 50,000 100,000 100,000 9,000,000 400,000 400,000 Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. Setups per setup per machine hour Machining Engineering Packing per engineering hour per packing order 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar. Deluxe Regular per unit 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: Quantity Selling price Unit prime cost Deluxe Regular 100,000 800,000 $900 $750 $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 $2,150,000 Machining Machine hours 100,000 300,000 68,000,000 Engineering Engineering hours Packing Packing orders 50,000 100,000 100,000 9,000,000 400,000 400,000 Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. Setups per setup per machine hour Machining Engineering Packing per engineering hour per packing order 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar. Deluxe Regular per unit per unit