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Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Home Direct materials cost per unit Direct
Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Home Direct materials cost per unit Direct labor cost per unit Sales price per unit $ 37 Work $ 70 20 34 365 574 Expected production per month 610 units 330 units Harbour has monthly overhead of $180,600, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 83,300 62,100 35,200 $180,600 The company has also compiled the following information about the chosen cost drivers: Number of setups Number of inspections Home 43 Work Total 55 98 330 345 Number of machine hours 1,000 2,200 675 3,200 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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