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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
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 S 38 S 67 39 568 17 356 780 units 300 units Harbour has monthly overhead of $193,550, which is divided into the following cost pools Setup costs Quality control Maintenance $72,380 61,770 59,400 $193,550 Total The company has also compiled the following information about the chosen cost drivers: Number of setups Number of inspections Number of machine hours Home Work Total 94. 380 710 1,100 2,200 3,300 35 330 59 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.) Overhead Assigned 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 intermediate calculations and final answers to 2 decimal places.) Home Work 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 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 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)
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