Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Home Work Direct materials cost per unit $ 36 $ 69 Direct labor cost per unit 17 39 Sales price per unit 361 571 Expected production per month 750 units 470 units r Harbour has monthly overhead of$195,800, which is divided into the following cost pools: Setup costs $ 76,440 Quality control 63,360 Maintenance 56,000 Total $ 195,800 :'>': The company has also compiled the following information about the chosen cost drivers: Home Work Total Number of setups 36 55 91 Number of inspections 320 340 660 Number of machine hours 1,600 1,900 3,500 r , 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 nal answers to the nearest whole dollar amount.) Home Model: Work Model: Total Overhead Cost 2. Calculate the production cost per unit for each of Harbour's products under a traditional costing system. (Round your intermediate calculations and nal answers to 2 decimal places.) Unit Cost 3. Calculate Harbour's gross margin per unit for each product under the traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Gross Margin 4. Select the appropriate cost driver for each cost pool and calculate the activity rates if Harbour wanted to implement an ABC system. Setup Costs Quality Control Maintenance 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. Setup Costs Quality Control Maintenance Total Overhead Cost 6. Calculate the production cost per unit for each of Harbour's products in an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.) Unit Cost 7. Calculate Harbour's gross margin per unit for each product under an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.) Gross Margin 8. Compare the gross margin of each product under the traditional system and ABC. (Round your answers to 2 decimal places.) Gross Margin (Traditional) Gross Margin (ABC)