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Harbour Company makes two models of electronic tablets, the Home and the Work, Basic production information follows Diroct materials cost per unit Direct labor cost
Harbour Company makes two models of electronic tablets, the Home and the Work, Basic production information follows Diroct materials cost per unit Direct labor cost per unit Sales price per unt Expected production per month HomeWork S 41 $68 30 570 23 640 units 370 units Harbour has monthly overhead of $188,640, which is divided into the folowing cost pools: Sotup costs Quality control Maintenance S 84,000 63,840 40,800 5188,640 Total The company has also compiled the folowing information about the chosen cost drivers Nurmber of sotups Number of inspections Nurmber of machino hours Home Work Total 100 320 345 685 1,800 1800 3,400 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.) Home Model: Work Model: Tota Cost 2. Calculate the production cost per unit for each or Harbour's products under a traditional costing system. (Round your intemediate 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 MMargin 4. Select the appropriate cost driver for each cost pool and cakculate the activity rates if Harbour wanted to implement an ABC system. Setup Costs Quality Control
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