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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 Home $ 41 Work $ 65 18 366 33 569 Expected production per month 720 units 460 units Harbour has monthly overhead of $186,590, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 83,000 58,590 45,000 $186,590 The company has also compiled the following information about the chosen cost drivers: Number of setups Number of inspections Home 37 350 Work Total Number of machine hours 1,100 63 280 1,400 100 630 2,500
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