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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 $ 44 16 367 Work $ 70 30 567 770 units 330 units Harbour has monthly overhead of $192,160, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 85,020 66,640 40,500 $192,160 The company has also compiled the following information about the chosen cost drivers: Number of setups Number of inspections Home 42 Number of machine hours 320 1,200 Work 67 360 1,500 Total 109 680 2,700 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.) Overhead Assigned Home Model: Work Model: Total Overhead Cost $ 0
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