Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production Information follows: Home Direct materials cost per unit Direct

image text in transcribedimage text in transcribed

Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production Information follows: Home Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month $ 43 18 Work $ 63 34 350 566 730 units 330 units Harbour has monthly overhead of $169,200, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 72,900 65,100 31,200 $169,200 The company has also compiled the following information about the chosen cost drivers: Number of setups Hone 37 Work 53 Total Number of inspections Number of machine hours 330 1,600 370 1,000 90 700 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 Total Overhead Cost S 0 2. Calculate the production cost per unit for each of Harbour's products under a traditional costing system. (Round your Intermediate calculations and final answers to 2 decimal places.) Unit Cost Home Work 3. Calculate Harbour's gross margin per unit for each product under the traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Home Work Gross Margin 4. Select the appropriate cost driver for each cost pool and calculate the activity rates if Harbour wanted to Implement an ABC system.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

2nd edition

9780077493677, 78025516, 77493672, 9780077826482, 978-0078025518

More Books

Students also viewed these Accounting questions

Question

How does visua lization w ork? (p. 2 80)

Answered: 1 week ago

Question

Make a frequency histogram of the data set using seven classes.

Answered: 1 week ago

Question

Make a Pareto chart of the data set.

Answered: 1 week ago