Solution-Calculate the overhead rates for each activity

Calculate the overhead rates for each activity

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Reference no: EM131722046

Problem - 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	Activity Cost	Deluxe	Regular
Setups	Number of setups	$3,000,000	300	200
Machining	Machine hours	91,000,000	100,000	300,000
Engineering	Engineering hours	6,700,000	50,000	100,000
Packing	Packing orders	600,000	100,000	400,000

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: EM131722046

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Calculate the overhead rates for each activity

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