ch 2 PA4-3 (Algo) Selecting Cost Drivers, Assigning Costs Using Activity Rates (LO 4-1, 4-3, 4-4, 4-6 ] Harbour Company makes two models of electronic tablets, the Home and the Work.Basic production information follows: boint Direct materials cost per unit Direct labor cont per unit Sales price per unit Expected production per month Home Work $ 67 22 40 362 566 670 units 480 units ook rences Harbour has monthly overhead of $202,475%which is divided into the following cost pools: Setup costa Quality control Maintenance Total $ 80,000 63.075 59.400 $202,475 The company has also compiled the following information about the chosen cost drivers: Work 60 Home be of setup 40 Bet of inspection 310 ber of machine hours 1,200 Total 100 725 13,300 2.100 Check me 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 dolla amount.) Overhead Assigned DOM Home Model Work Model Total Overhead Cost $ 0 2. Calculate the production cost per unit for each of Harbour's products under a traditional costing system. (Round your Intermediat calculations and final answers to 2 decimal places.) Unit Cost 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 4. Select the appropriate cost driver for each qost pool and calculate the activity rates if Harbour wanted to implement an ABC system Setup Costs | CHUNG Mainance 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. Overhead Assigned To Home Overhead Assigned To Work Setup Costs Quality Control Maintenance Totul Overhead Cost $ 0 $ 0 7. Calculate Harbour's gross margin per unit for each product under an ABC system. (Round your intermediate calculation 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 plac Home Work Gros Margin (Traditional) Groun Margin (ADC) 1 Chec 7. Calculate Harbour's gross margin per unit for each product under an ABC system. (Round your intermediate calculations ar answers to 2 decimal places.) Home Work Gros Margin 8. Compare the gross margin of each product under the traditional system and ABC. (Round your answers to 2 decimal places Home Work Gross Margin (Traditional) Gross Margin (ABC)