Business, 21.02.2020 22:46 nekobaby75
Activity Rates and Activity-Based Product 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: 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 - $2,000,000 Machining - Machine hours - 100,000 - 300,000 - 80,000,000 Engineering - Engineering hours - 50,000 - 100,000 - 6,000,000 Packing - Packing orders - 100,000 - 400,000 - 100,0001. 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
Answers: 2
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Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic eq...
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