Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 21 356 Work $ 62 39 572 700 units 370 units Harbour has monthly overhead of $179,270, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 77,190 65,780 36,300 $179,270 The company has also compiled the following information about the chosen cost drivers: Number of setups Home 41 Number of inspections Number of machine hours 340 1,000 Work 52 375 2,300 Total 93 715 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.) Home Model: Work Model: Total Overhead Cost Overhead Assigned
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started