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 Work $ 40 $ 69 19 38 358 575 700 units 438 units Harbour has monthly overhead of $194,450, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 90,300 56,550 47,600 $194,450 The company has also compiled the following information about the chosen cost drivers: Home Number of setups 40 Number of inspections 300 Number of machine hours 1,300 Work Total 65 105 350 650 1,500 2,800 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 Prev 1 of 1 HHH Wou 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.) Answer is complete and correct. Overhead Assigned Home Model: 90,280 Work Model: s 104,170 Total Overhead Cost $ 194,450 s 2. Calculate the production cost per unit for each of Harbour's products under a traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Answer is complete and correct. Home Work Unit Cost 187.97 S 349.26 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.) Answer is complete and correct. Home Work $ 170.03 $ 225.75 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 Answer is complete and correct. $ 860 s 87 Setup Costs Quality Control Maintenance Setups Inspections Machine Hours s 17 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. Setup Costs Quality Control Maintenance Total Overhead Cost Answer is complete and correct. Overhead Assigned Overhead Assigned To Home To Work $ 34.400 55,900 s 26,100 $ 30.450 S 22,100 25,500 $ 82,600 $ 111,850 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.) Answer is complete but not entirely correct. Work Home 177.00 s s 383.40 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.) Answer is complete but not entirely correct. Home Work Gross Margin S181.00 $ 191.60 8. Compare the gross margin of each product under the traditional system and ABC. (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Home Work Gross Margin (Traditional) $ 170.03 S 225.75 Gross Margin (ABC) $ 181.00 $ 191.60
