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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: Regular 800,000 $750 $483 Deluxe Quantity Selling price Unit prime cost In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Regular Activity Cost Setups Number of setups Machining Machine hours Engineering Engineering hours Packing Packing orders Required: 100,000 $900 $529 Setups Machining Deluxe 4,000 140 300 100,000 50,000 100,000 200 300,000 100,000 400,000 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. per setup per machine hour $2,000,000 56,000,000 6,000,000 450,000

Semny price 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 Machining Engineering Packing 140 $700 40 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. <Setups 4,000 per setup 0.20 300 per machine hour 100,000 50,000 100,000 200 300,000 100,000 400,000 $2,000,000 56,000,000 6,000,000 450,000 per engineering hour per packing order 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar. Deluxe 761 per unit Regular 564 per unit