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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 $ 44 16 364 Work $ 64 33 566 710 units 430 units Harbour has monthly overhead of $171,820, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 75,460 61,160 35,200 $171,820 The company has also compiled the following information about the chosen cost drivers: Number of setups Number of inspections Home 36 Work 62 Total 98 320 375 695 Number of machine hours 1,200 2,000 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.) Home Model: Work Model Total Overhead Cost Overhead Assigned
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