Question
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 $ 38 22 351 Expected production per month Sales price per unit Work $ 70 35 569 730 units 390 units Harbour has monthly overhead of $181,050, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 70,070 55,880 55,100 $181,050 The company has also compiled the following information about the chosen cost drivers: Number of setups Home 39 Work 52 Number of inspections 330 305 Number of machine hours 1,000 1,900 Total 91 635 2,900
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