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Harbour Company makes two models of electronic tablets, the Home and the Work Basic production Information follows: Home Work Direct materials cost per unit $

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Harbour Company makes two models of electronic tablets, the Home and the Work Basic production Information follows: Home Work Direct materials cost per unit $ 45 $ 65 Direct labor cost per unit 23 Sales price per unit 369 570 Expected production 660 units 350 units per month 35 Harbour has monthly overhead of $181,760, which is divided into the following cost pools: Setup costs $ 11,000 Quality control 60,260 Maintenance 40,500 Total $181,760 The company has also compiled the following information about the chosen cost drivers: Home Work Total Number of setups 37 63 100 Number of 320 inspections 335 655 Number of machine hours 1,300 1,400 2,700 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.) Overhead Ansigned Home Model: Work Model: Total Overhead Cost $ 0 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.) Home Work 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.) Home Work Gross Margin 4. Select the appropriate cost driver for ench cost pool and calculate the activity rotes 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. Overhead Assigned To Home Overhead Assigned 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 Interme calculations and final answers to 2 decimal places.) Home Work Unit Cost 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 a. 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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