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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 cost

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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 cost per unit Sales price per unit Expected production per month Home Work $ 39 $ 69 24 31 369 579 740 units 480 units Harbour has monthly overhead of $180,525, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 79, 790 51,435 49, 300 $180,525 The company has also compiled the following information about the chosen cost drivers: Home 43 Number of setups Number of inspections Number of machine hours Work 58 295 1,700 340 Total 101 635 2,900 1,200 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. Answer is not complete. Overhead Assigned Overhead Assigned To Home To Work Setup Costs Quality Control Maintenance Total Overhead Cost $ 0 $ 0 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.) Home Work 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.) Home Work Gross Margin 8. Compare the gross margin of each product under the traditional system and ABC. (Round your answers to 2 decimal places.) Home Work Gross Margin (Traditional) Gross Margin (ABC)

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