5. Assuming an ABC system, assign overhead costs to each product based on activity demands.

6. Calculate the production cost per unit for each of Harbours products in an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.)

7. Calculate Harbours gross margin per unit for each product under an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.)

8. Compare the gross margin of each product under the traditional system and ABC. (Round your answers to 2 decimal places.)

Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month Home Work $ 42 $ 68 21 37 355 570 640 units 420 units Harbour has monthly overhead of $190,060, which is divided into the following cost pools: Setup costs Quality control Maintenance $ 86,320 68,640 35,100 $190,060 Total The company has also compiled the following information about the chosen cost drivers: Number of setups Number of inspections Number of machine hours Home 41 320 1,100 Work 63 395 1,600 Total 104 715 2,700