Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5 Harbour Company makes two models of electronic Home and the Work. Basic production Information follows: Direct materials cost per unit Direct labor cost per

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
5 Harbour Company makes two models of electronic 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 365 23 155 3 74 e units s Harbour hos monthly overhead of $188.980, which is divided into the following cost pool: $ 85,68 58, See Setup costs Quality control Maintenance Total The company has also complied the following information about the chosen cost drivers work Total Number of setups Number of inspections Number of machine hour he 1,500 1, 200 Required: traditional cocting system with machine hours as the cost driver. Determine the amount of overhead w aterculations and round your final answers to the nearest whole dollar Required: 1. Suppose Harbour uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. (Do not round Intermediate calculations and round your final answers to the nearest whole dollar amount.) Overhead Assigned Home Model Work Model Total Overhead Cost 2. Calculate the production cost per unit for each of Harbour's products under a traditional costing system (Round your intermediate calculations and final answers to 2 decimal places.) 3. Calculate Harbour's gross margin per unit for each product under the traditional costing system. (Round your Intermediate calculations and final answers to 2 decimal places.) Home Work Gross Margin T 4. Select the approprate cost driver for each cost pool and calculate the activity rates of Harbour wanted to implement an ABC system Setup Costs Quality Control Maintenance 5. Assuming an ABC system assign overhead costs to each product based on activity demands Overhead Assigned To Home Overhead Assigned To Work LDA Setup Costs Quality Control Maintenance Total Overhead con 6. Calculate the production cost per unit for each of Harbour's products in an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.) Home Unit Cost 7. Calculate Harbour's gross margin per unit for each product under an ABC system. (Round your Intermediate calculations and final answers to 2 decimal places.) Home Work Gross Margin 8. Compare the gross margin of each product under the traditional system and ABC. (Round your answers to 2 decimal places.) Work Gross Margin (Traditional) Gross Margin (ABC)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Intelligence For Entrepreneurs What You Really Need To Know About The Numbers

Authors: Karen Berman, Joe Knight

1st Edition

1422119157, 9781422119150

More Books

Students also viewed these Accounting questions

Question

What research background do you have?

Answered: 1 week ago