Question

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 100,000 800,000 Selling price $900 $750 Unit prime cost $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 $1,900,000 Machining Machine hours 100,000 300,000 64,000,000 Engineering Engineering hours 50,000 100,000 12,000,000 Packing Packing orders 100,000 400,000 300,000 Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. Setups $ per setup Machining $ per machine hour Engineering $ per engineering hour Packing $ per packing order 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar. Deluxe $ per unit Regular $ per unit

Answer 1

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