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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 Home $ 37 15. 365 Expected production per month Work $ 67 32 574 710 units 470 units Harbour has monthly overhead of $202,375, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 84,000 60,775 57,600 $202,375 The company has also compiled the following information about the chosen cost drivers: Number of setups Number of inspections Home 44 330 Work Total Number of machine hours 1,400 56 385 1,800 100 715 3,200
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