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

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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