Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 8 Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production Information follows: Home Work $ 39 $ 63 24 30 364 576 750 units 420 units Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month 3.5 points Harbour has monthly overhead of $169,120, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 78, 120 54,600 36,400 $169, 120 The company has also compiled the following information about the chosen cost drivers: Number of setups Number of inspections Number of machine hours Home 36 350 1,600 Work Total 57 93 300 650 1,200 2,800 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.) Answer is complete and correct. Overhead Assigned Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 8 4. Select the appropriate cost driver for each cost pool and calculate the activity rates if Harbour wanted to implement an ABC system. Answer is complete but not entirely correct. 3.5 points Setup Costs Setups 840 S X $ Quality Control Setups 84 Maintenance Setups X $ 13 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. Answer is not complete. Overhead Assigned Overhead Assigned To Home To Work $ 289 $ 615 X Setup Costs Quality Control Maintenance Total Overhead Cost $ 289 615 Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 8 3.5 points 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 Work 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 O Cammaratha arare marainfach aradiset linder the traditional purtam ad ADC 10.ndirancarta decimallace Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 00 3.5 points 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.) Home Work Gross Margin (Traditional) Gross Margin (ABC)
