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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 18 360 Work $ 65 31 575 710 units 410 units Harbour has monthly overhead of $182,020, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 78,000 60,520 43,500 $182,020 The company has also compiled the following information about the chosen cost drivers: Number of setups Home 39 Work Total Number of inspections 340 61 340 100 680 Number of machine hours 1,500 1,400 2,900
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