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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 Home $ 40 24 362 Expected production per month Work $ 70 33 569 750 units 330 units Harbour has monthly overhead of $185,340, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 79,800 58,740 46,800 $185,340 The company has also compiled the following information about the chosen cost drivers: Number of setups Home 38 Number of inspections 340 Number of machine hours 1,600 Work 57 320 1,000 Total 95 660 2,600 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
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