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 56,000,000 Engineering Engineering hours 50,000 100,000 9,000,000 Packing Packing orders 100,000 400,000 400,000 Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar. Deluxe $____per unit Regular $____per unit
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based 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 | 56,000,000 |
| Engineering | Engineering hours | 50,000 | 100,000 | 9,000,000 |
| Packing | Packing orders | 100,000 | 400,000 | 400,000 |
Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar.
| Deluxe | $____per unit |
| Regular | $____per unit |
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