Calculate the overhead rates for each activity

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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

$1,950,000

Machining

Machine hours

100,000

300,000

40,000,000

Engineering

Engineering hours

50,000

100,000

12,000,000

Packing

Packing orders

100,000

400,000

450,000

Required -

1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent.

2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar.

Reference no: EM133169896

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