Answer:
1. Overheads rate per activity
Setup = $4,100 per setup
Machining = $120 per machine hour
Engineering = $60 per engineering hour
Packing = $0.30 per packing order
2. Cost per unit
Deluxe = $162.60
Normal = $53.675
Explanation:
As for the provided information:
We have,
Different activities as follows:
Setups = $2,050,000
Total setups = 300 + 200 = 500
Rate = $2,050,000/500 = $4,100 per setup
Machining = $48,000,000
Total machine hours = 100,000 + 300,000 = 400,000
Machine hour rate = $48,000,000/400,000 = $120 per machine hour
Engineering = $9,000,000
Total engineering hours = 50,000 + 100,000 = 150,000
Rate per hour = $9,000,000/150,000 = $60 per hour
Packing = $150,000
Packing orders = 100,000 + 400,000 = 500,000
Rate per hour = $150,000/500,000 = $0.30 per order
2. Calculating per product cost
Particulars Deluxe Normal
Setup Cost
In 3:2 ratio $1,230,000 $820,000
Machining Cost
In 1:3 ratio $12,000,000 $36,000,000
Engineering cost
In 1:2 ratio $3,000,000 $6,000,000
Packing Cost
In 1:4 Ratio $30,000 $120,000
Therefore total cost for each printer
$16,260,000 $42,940,000
Number of units 100,000 800,000
<u>Cost per unit $162.60 $53.675</u>
