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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 19 356 Work $ 67 31 570 800 units 310 units Harbour has monthly overhead of $184,980, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 77,760 63,020 44,200 $184,980 The company has also compiled the following information about the chosen cost drivers: Number of setups Number of inspections Home 43 Work 53 Total 96 330 355 685 Number of machine hours 1,300 2,100 3,400 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 Overhead Assigned Total Overhead Cost $ 0
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