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 Sales price per unit Expected production per month Home $ 45 Work $ 69 20 39 368 569 730 units 490 units Harbour has monthly overhead of $207,350, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 87,200 60,750 59,400 $207,350 The company has also compiled the following information about the chosen cost drivers: Number of setups Number of inspections Number of machine hours Home Work Total 37 340 72 335 109 1,600 1,700 675 3,300 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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