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 s Regular 800,000 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 Activity Cost Setups Number of setups Machining Machine hours Engineering Packing Required: 100,000 QLKHÔ Regular $900 $529 Engineering hours Packing orders 0306 $750 per unit por unit $483 Deluxe 300 100,000 50,000 100,000 Regular 200 300,000 100,000 400,000 $2,150,000 44,000,000 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. Setups per setup per machine hour Machining Engineering per engineering hour Packing per packing orde 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar. 15,000,000 400,000
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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