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Activity Based 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 produced and sold 20,000 80,000 Selling price per unit 1,000 750 Direct materials cost per units 250 $ 150 Direct labor cost per unit 300 $ 200 In addition, the following information was provided so that overhead costs could be assigned to each product using activity based costing Activity Name Activity Driver Overhead Cost Deluxe Regular Total Activity Driver Setups Number of setups $ 2,000,000 300 200 Machining Machine hours $ 8,000,000 100,000 300,000 400,000 Engineering Engineering hours $ 6,000,000 50,000 100,000 150.000 Packing Packing orders $ 500,000 20,000 80,000 100,000 $ 16,500,000 500 1. Calculate a rate for each activity by using the associated driver: Setups: 5 per setup Machining: 5 per machine hour Engineering: 5 per engineering hour Packing: 5 per packing onder 2. Using the Activity-based Costing (ABC) assignment method how much is the overhead cost per unit for the: Deluxe Printer Regular Printer 3. Calculate the product cost per unit for the: Deluxe Printer Regular Printer 4. Assuming all product costs are variable, calculate the contribution margin per unit for the: Deluxe Printer Regular Printer