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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 $ 37 18 351 Work $ 71 34 581 650 units 330 units Harbour has monthly overhead of $199,775, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 78,850 61,425 59,500 $199,775 The company has also compiled the following information about the chosen cost drivers: Number of setups Home 45 Number of inspections Number of machine hours 310 1,200 Work 50 365 2,300 Total 95 675 3,500 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. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) Home Model: Work Model: Total Overhead Cost Overhead Assigned
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