Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Direct materials cost per unit Sales price per unit Direct labor cost per unit Expected production per month Home $ 44 15 Work $ 69 36 363 700 units 569 310 units Harbour has monthly overhead of $199,980, which is divided into the following activity pools: Setup costs Quality control Maintenance Total $ 79,680 59,500 60,800 $ 199,980 The company also has compiled the following information about the chosen cost drivers: Number of setups Number of inspections Number of machine hours Home 40 320 1,400 Work 56 380 1,800 Total 96 700 3,200 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. 2. Calculate the production cost per unit for each of Harbour's products under a traditional costing system. 3. Calculate Harbour's gross margin per unit for each product under the traditional costing system. 4. Select the appropriate cost driver for each activity pool and calculate the activity rates if Harbour wanted to implement an ABC system. rhead costs to each product based on activity demands.