Hammer company produces a variety of electronic equipment

Exercise 7-51 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
Quality 100,000 800,000
Selling price $900 $750
United price cost $529 $483

In addition, the following information was provided so that overhead costs could be assigned in each product:
Activity Activity Driver Activity Cost Deluxe Regular
Setups number of setups $2,000,000 300 200
Machining Machine hours 80,000,000 100,000 300,000
Engineering Engineering hours 6,000,000 50,000 100,000
Packing Packing orders 100,000 100,000 400,000

Required:
1.  calculate the overhead rates for each activity.
2. Calculate the per-unit product cost for each product. (Round to the nearest dollar.)

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