Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows:

	Home			Work
Direct materials cost per unit	$	44		$	66
Direct labor cost per unit		18			37
Sales price per unit		361			580
Expected production per month		650	units		490	units

Harbour has monthly overhead of $172,590, which is divided into the following cost pools:

Setup costs	$	74,260
Quality control		59,130
Maintenance		39,200
Total	$	172,590

The company has also compiled the following information about the chosen cost drivers:

	Home	Work	Total
Number of setups	44	50	94
Number of inspections	330	400	730
Number of machine hours	1,200	1,600	2,800

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: ____

2. Calculate the production cost per unit for each of Harbours products under a traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places.)

Unit cost: home: ____, work: ____

3. Calculate Harbours 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: home: ____, work: ____

4. Select the appropriate cost driver for each cost pool and calculate the activity rates if Harbour wanted to implement an ABC system.

setup cost: ____

Quality Control: ____

Maintenance: ____

5. Assuming an ABC system, assign overhead costs to each product based on activity demands.

setup costs: overhead assigned to home: ____, overhead assigned to work: ____

Quality control: overhead assigned to home: ____, overhead assigned to work: ____

Maintenance: overhead assigned to home: ____, overhead assigned to work: ____