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5.5

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: In addition, the following information was provided so that overhead costs could be assigned to each product: 1. Calculate the overhead rates for each activity, if required, carry vour answers out to the nearest cent. Setups per setup Machining per machine hour 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar. Deluxe X per unit Reqular x per unit Foediack Freck My Wark 1. Determine the overhead rates by dividing the activity cost by the total number of drivers. 2. Assign costs using the rates in 1 and the drivers per product. Total costs for each product and divide by the number of units