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 $ 38 18 361 698 units $66 36 583 Work 500 units Harbour has monthly overhead of $172,825, which is divided into the following activity pools: Setup costs Quality control Maintenance Total $ 79,310 60,515 33,000 $172,825 The company also has compiled the following information about the chosen cost drivers: Number of setups Number of inspections Number of machine hours 35 300 1,300 Work 68 365 1,700 Total 103 665 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. 2. Calculate the production cost per unit for each of Harbour's products under a traditional costing system. 3. Calculate Harbour's gross margin per unit for each product under the traditional costing system. 4. Select the appropriate cost driver for each activity pool and calculate the activity rates if Harbour wanted to implement on ABC system. 5. Assuming on ABC system, assign overhead costs to each product based on activity demands. 6. Calculate the production cost per unit for each of Harbour's products in an ABC system. 7. Calculate Harbour's gross margin per unit for each product under an ABC system. 8. Compare the gross margin of each product under the traditional system and ABC. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Suppose Harbour uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. Note: 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 < Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Calculate the production cost per unit for each of Harbour's products under a traditional costing system. Note: Round your intermediate calculations and final answers to 2 decimal places. Unit Cost Home Work < Required 1 Required 3 > Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Calculate Harbour's gross margin per unit for each product under the traditional costing system. Note: Round your intermediate calculations and final answers to 2 decimal places. Gross Margin Home Work < Required 2 Required 4 > Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Select the appropriate cost driver for each activity pool and calculate the activity rates if Harbour wanted to implement an ABC system. Setup Costs Quality Control Setups Inspections Maintenance Machine Hours < Required 3 Required 5 > Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Assuming an ABC system, assign overhead costs to each product based on activity demands. Setup Costs Overhead Assigned Overhead Assigned To Home To Work Quality Control Maintenance Total Overhead Cost $ 0 $ 0 < Required 4 Required 6 > Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Calculate the production cost per unit for each of Harbour's products in an ABC system. Note: Round your intermediate calculations and final answers to 2 decimal places. Unit Cost Home Work < Required 5 Required 7 > Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Calculate Harbour's gross margin per unit for each product under an ABC system. Note: Round your intermediate calculations and final answers to 2 decimal places. Gross Margin Home Work < Required 6 Required 8 > Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Compare the gross margin of each product under the traditional system and ABC. Note: Round your answers to 2 decimal places. Gross Margin (Traditional) Gross Margin (ABC) Home Work < Required 7 Required 8 >