# Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment

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 \$2,200,000 Machining Machine hours 100,000 300,000 80,000,000 Engineering Engineering hours 50,000 100,000 10,500,000 Packing Packing orders 100,000 400,000 200,000 Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent. Setups \$fill in the blank 1 per setup Machining \$fill in the blank 2 per machine hour Engineering \$fill in the blank 3 per engineering hour Packing \$fill in the blank 4 per packing order 2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar. Deluxe \$fill in the blank 5per unit Regular \$fill in the blank 6per unit

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