Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Direct materiale cost per uni Direct labor cost per unit sales price per unit Expected production per month 363 630 units Work 70 12 568 330 unite Harbour has monthly overhead of $185,410, which is divided into the following activity pools: Setup Quality control T $71,610 54,400 The company also has compiled the following information about the chosen cost drivers Mumber of machine hours Required: Total 53 1,400 1.800 3,400 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. 5. Assuming an ABC system, assign overhead costs to each product based on activity demands 6. Calculate the production cost per unit for each of Harbour's products in an ABC system 7. Calculate Harbour's gross margin per unit for each product under an ABC system 8. Compare the gross margin of each product under the traditional system and ABC Complete this question by entering your answers in the tabs below. < Prev 7 of 7 Next >