Question: 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:
In addition, the following information was provided so that overhead costs could be assigned to each product:
Required: 1. Calculate the overhead rates for each activity.
2. Calculate the per-unit product cost for each product.