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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 Hone $ 44 Work $65 21 31 366 575 Expected production per month 640 units 440 units) Harbour has monthly overhead of $187,750, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 81,810 54,940 51,000 $187,750 The company has also compiled the following information about the chosen cost drivers: Number of setups Home Work Total 41 60 101 Number of inspections Number of machine hours 320 1,500 358 1,500 678 3,000 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.) Next
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