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(Solved): Hammer Company produces a variety of electronic equipment. One of its plants produces two laser pri ...



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 $2,250,000 Machining Machine hours 100,000 300,000 48,000,000 Engineering Engineering hours 50,000 100,000 13,500,000 Packing Packing orders 100,000 400,000 300,000 Required: These are the Calculated overhead rates for each activity. Setups 4,500 per setup Machining 120 per machine hour Engineering 90 per engineering hour Packing 0.60 per packing order 1. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar. Deluxe What is the per unit Regular What is the per unit Feedback Area Feedback 1. Determine the overhead rates by dividing the activity cost by the total number of drivers. 2. Assign costs using the rates in #1 and the drivers per product. Total costs for each product and divide by the number of units.



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