Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Home $ 40 23 351 Work $

image text in transcribedimage text in transcribedimage text in transcribed

Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Home $ 40 23 351 Work $ 64 Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month 39 572 650 units 310 units Harbour has monthly overhead of $177,540, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 79,790 62,550 35,200 $177,540 The company has also compiled the following information about the chosen cost drivers: Number of setups Home 43 Work Total 58 101 Number of inspections Number of machine hours 330 1,400 365 1,800 695 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.) Home Model: Work Model: Total Overhead Cost Overhead Assigned 2. Calculate the production cost per unit for each of Harbour's products under a traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Unit Cost Home Work 3. Calculate Harbour's gross margin per unit for each product under the traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Home Work Gross Margin

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic Accounting

Authors: Robert Rufus, Laura Miller, William Hahn

1st Edition

133427528, 133050475, 9780133427523, 978-0133050479

More Books

Students also viewed these Accounting questions

Question

Briefly define Galens constitutional types.

Answered: 1 week ago