Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows:

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. 2.Calculate the production cost per unit for each of Harbours products under a traditional costing system. 3. Calculate Harbours gross margin per unit for each product under the traditional costing system 4.Assuming an ABC system, assign overhead costs to each product based on activity demands. 5. Compare the gross margin of each product under the traditional system and ABC.

TA Moj Selecully LOSL Univers, ASSIYuy LOSIS USMY ACUVILy Kales LV 1,3,9-7,40 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 $ 37 $ 70 17 36 365 580 650 units 410 units Harbour has monthly overhead of $183,480, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 81,600 62,880 39,000 $183, 480 The company has also compiled the following information about the chosen cost drivers: Number of setups Number of inspections Number of machine hours Home 42 310 1,500 Work 54 345 1,500 Total 96 655 3,000 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.)