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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
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 $ 35 Work $ 66 16 31 355 567 750 units 360 units Harbour has monthly overhead of $181,780, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 76,950 67,130 37,700 $181,780 The company has also compiled the following information about the chosen cost drivers: Home Work Total Number of setups Number of inspections 38 310 Number of machine hours 1,400 57 375 1,500 95 685 2,900.
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