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Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the
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Here you go with the solution - Cost per unit of Deluxe and Regular are 760.50 and 561.63 respectively

1 Calculate the overhead rates for each activity
Activity Name Deluxe Regular Total Activity Cost Overhead rate
Setups                         300                           200                  500            18,50,000                       3,700
Machining               1,00,000                 3,00,000        4,00,000         7,20,00,000                           180
Engineering                   50,000                 1,00,000        1,50,000         1,20,00,000                             80
Packing               1,00,000                 4,00,000        5,00,000               2,00,000                            0.4
2 Per-unit Product Cost for each project
Particulars Deluxe Regular
Units               1,00,000                 8,00,000
Unit Prime Cost 529 483
Prime Cost         5,29,00,000         38,64,00,000
Add. Overhead Cost
Setups             11,10,000                 7,40,000
Machining         1,80,00,000           5,40,00,000
Engineering             40,00,000               80,00,000
Packing                   40,000                 1,60,000
Total Cost         7,60,50,000         44,93,00,000
Units               1,00,000                 8,00,000
Cost per unit                   760.50                     561.63
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