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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 $ 41 Work $ 66 23 33 352 585 670 units 380 units Harbour has monthly overhead of $193,000, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 80,580 59,220 53,200 $193,000 The company has also compiled the following information about the chosen cost drivers: Number of setups Home 39 Number of inspections. 350 Work 63 355 1,300 Total 102 705 2,800 Number of machine hours 1,500 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.) nep
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