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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
Activity Cost
Setups
Number of setups
300
200
$1,950,000
Machining
Machine hours
300,000
40,000,000
Engineering
Engineering hours
50,000
12,000,000
Packing
Packing orders
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.
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