Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of its

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Activity Rates And Activity Based Product Costing Hammer Company Produces A Variety Of Electronic Equipment One Of Its 1 (29.22 KiB) Viewed 32 times

Activity Rates And Activity Based Product Costing Hammer Company Produces A Variety Of Electronic Equipment One Of Its 2 (31.63 KiB) Viewed 32 times

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 Deluxe Regular Activity Cost Setups Machining Engineering Packing Required: Activity Driver Number of setups Machine hours Engineering hours Packing orders Setups Machining Engineering 300 100,000 50,000 100,000 200 300,000 100,000 400,000 1. Calculate the overhead rates for each activity. (Round to two decimal places.) 5,000 X per setup 177.50 X per machine hour 37.33 X per engineering hour $2,000,000 80,000,000 6,000,000 100,000

In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Deluxe Activity Cost Setups Machining Engineering Packing Required: Deluxe Regular Feedback Activity Driver Number of setups Machine hours Engineering hours Packing orders Check My Work 300 100,000 50,000 100,000 Regular 200 1. Calculate the overhead rates for each activity. (Round to two decimal places.) Setups 5,000 X per setup Machining 177.50 X per machine hour Engineering 37.33 X per engineering hour Packing 0.4 X per packing order 2. Calculate the per-unit product cost for each product. (Round to the nearest dollar.) 740.57 X per unit 555.68 X per unit 300,000 100,000 400,000 $2,000,000 80,000,000 6,000,000 100,000