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Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Work Home 37 64 Direct materials cost per
Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Work Home 37 64 Direct materials cost per unit Direct labor cost per unit 39 359 583 Sales price per unit Expected production per month 800 units 420 units Harbour has monthly overhead of $186,425, which is divided into the following cost pools: 79,560 Setup costs Quality control 60,465 46,400 Maintenance Total 186,425 The company has also compiled the following information about the chosen cost drivers: Work Total Home Number of setups 64 102 Number of inspections 350 345 695 Number of machine hours 1,200 1,700 2,900
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