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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 15 365 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 Home 44 Work Total 56 100 Number of inspections 330 Number of machine hours 1,400 385 1,800 715 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. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.)
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