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Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Work $62 Home Direct materials cost per
Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Work $62 Home Direct materials cost per unit Direct labor cost per unit Sales price per unit $.43 22 35 355 572 Expected production per month 770 units 340 units Harbour has monthly overhead of $177,080, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 85,320 57,960 33,800 $177,080 The company has also compiled the following information about the chosen cost drivers: Number of setups Home 43 Work 65 Total 108 Number of inspections Number of machine hours 310 1,200 380 1,400 690 2,600 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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