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 Deluxe Quantity Selling price Unit prime cost 100,000 800,000 $900 $529 $750 $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 $2,250,000 Machining Machine hours 100,000 300,000 68,000,000 Engineering Engineering hours 50,000 100,000 7,500,000 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. Setups 4,500 per setup Machining Engineering Packing 170 per machine hour 50 per engineering hour 0.9 per packing order 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar. Deluxe 583 X per unit Regular 495 X per unit

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 Deluxe Quantity Selling price Unit prime cost 100,000 800,000 $900 $529 $750 $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 $2,250,000 Machining Machine hours 100,000 300,000 68,000,000 Engineering Engineering hours 50,000 100,000 7,500,000 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. Setups 4,500 per setup Machining Engineering Packing 170 per machine hour 50 per engineering hour 0.9 per packing order 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar. Deluxe 583 X per unit Regular 495 X per unit

Name: Activity Rates and Activity-Based Product CostingHammer Company produ
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Description: Activity Rates and Activity-Based Product CostingHammer 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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