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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 $ 39 Work $ 69 24 32 363 581 650 units 370 units Harbour has monthly overhead of $177,560, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 88,400 51,660 37,500 $177,560 The company has also compiled the following information about the chosen cost drivers: Number of setups Home 48 Work Number of inspections Number of machine hours 330 1,100 64 300 1,400 Total 184 630 2,500 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.) Overhead Assigned Home Model: Work Model: S 78,126 S 99,434 Total Overhead Cost S 177,560 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 183.19 $ 369.74 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
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