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 $2,100,000 Machining Machine hours 100,000 300,000 60,000,000 Engineering Engineering hours 50,000 100,000 10,500,000 Packing Packing orders 100,000 400,000 450,000 Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. 4,200 v per setup Setups Machining 150 v per machine hour

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Chapter 5 Practice Set (Not Graded)
O eBook
Print Item
In addition, the following information was provided so that overhead costs could be assigned to each product:
8. BE.05.28A.ALGO
Activity Name
Activity Driver
Deluxe
Regular
Activity Cost
9. EX.05.37.ALGO
Setups
Number of setups
300
200
$2,100,000
10. EX.05.38.ALGO
Machining
Machine hours
100,000
300,000
60,000,000
11. EX.05.39 ALGO
Engineering
Engineering hours
50,000
100,000
10,500,000
Packing
Packing orders
100,000
400,000
450,000
12. EX.05.40.ALGO
Required:
13. EX.05.41.ALGO
1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent.
14. EX.05.42.ALGO
Setups
4,200 V per setup
Machining
150 V per machine hour
15. EX.05.43.ALGO
Engineering
$4
70 v per engineering hour
16. EX.05.47 ALGO
Packing
0.9 V per packing order
17. EX.05.48.ALGO
2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar.
18. EX.05.49.BLANKSHEET.A.
Deluxe
3,776 x per unit
Regular
per unit
19. EX.05.51.ALGO
Feedback
20. PR.05.54.BLANKSHEET.A...
21. PR.05.62.ALGO
Transcribed Image Text:Chapter 5 Practice Set (Not Graded) O eBook Print Item In addition, the following information was provided so that overhead costs could be assigned to each product: 8. BE.05.28A.ALGO Activity Name Activity Driver Deluxe Regular Activity Cost 9. EX.05.37.ALGO Setups Number of setups 300 200 $2,100,000 10. EX.05.38.ALGO Machining Machine hours 100,000 300,000 60,000,000 11. EX.05.39 ALGO Engineering Engineering hours 50,000 100,000 10,500,000 Packing Packing orders 100,000 400,000 450,000 12. EX.05.40.ALGO Required: 13. EX.05.41.ALGO 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. 14. EX.05.42.ALGO Setups 4,200 V per setup Machining 150 V per machine hour 15. EX.05.43.ALGO Engineering $4 70 v per engineering hour 16. EX.05.47 ALGO Packing 0.9 V per packing order 17. EX.05.48.ALGO 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar. 18. EX.05.49.BLANKSHEET.A. Deluxe 3,776 x per unit Regular per unit 19. EX.05.51.ALGO Feedback 20. PR.05.54.BLANKSHEET.A... 21. PR.05.62.ALGO
Chapter 5 Practice Set (Not Graded)
O eBook
E Print Item
8. BE.05.28A.ALGO
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
9. EX.05.37.ALGO
beginning of the year, the following data were prepared for this plant:
10. EX.05.38.ALGO
Deluxe
Regular
11. EX.05.39.ALGO
Quantity
100,000
800,000
Selling price
$900
$750
12. EX.05.40 ALGO
Unit prime cost
$529
$483
13. EX.05.41.ALGO
In addition, the following information was provided so that overhead costs could be assigned to each product:
14. EX.05.42.ALGO
Activity Name
Activity Driver
Deluxe
Regular
Activity Cost
15. EX.05.43.ALGO
Setups
Number of setups
300
200
$2,100,000
Machining
Machine hours
100,000
300,000
60,000,000
16. EX.05.47.ALGO
Engineering
Engineering hours
50,000
100,000
10,500,000
17. EX.05.48.ALGO
Packing
Packing orders
100,000
400,000
450,000
18. EX.05.49.BLANKSHEET.A.
Required:
1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent.
19. EX.05.51.ALGO
Setups
4,200 v per setup
20. PR.05.54.BLANKSHEET.A..
Machining
150 V per machine hour
21. PR.05.62.ALGO
Check My Work
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Transcribed Image Text:Chapter 5 Practice Set (Not Graded) O eBook E Print Item 8. BE.05.28A.ALGO 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 9. EX.05.37.ALGO beginning of the year, the following data were prepared for this plant: 10. EX.05.38.ALGO Deluxe Regular 11. EX.05.39.ALGO Quantity 100,000 800,000 Selling price $900 $750 12. EX.05.40 ALGO Unit prime cost $529 $483 13. EX.05.41.ALGO In addition, the following information was provided so that overhead costs could be assigned to each product: 14. EX.05.42.ALGO Activity Name Activity Driver Deluxe Regular Activity Cost 15. EX.05.43.ALGO Setups Number of setups 300 200 $2,100,000 Machining Machine hours 100,000 300,000 60,000,000 16. EX.05.47.ALGO Engineering Engineering hours 50,000 100,000 10,500,000 17. EX.05.48.ALGO Packing Packing orders 100,000 400,000 450,000 18. EX.05.49.BLANKSHEET.A. Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. 19. EX.05.51.ALGO Setups 4,200 v per setup 20. PR.05.54.BLANKSHEET.A.. Machining 150 V per machine hour 21. PR.05.62.ALGO Check My Work Previous Next
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