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Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows Home $ 43 Work Direct materials cost per
Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows Home $ 43 Work Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month S 72 578 410 units 362 720 units Harbour has monthly overhead of $173,610, which is divided into the following cost pools Setup costs Quality control Maintenance $ 80,190 58,420 35,000 Total $173,610 The company has also compiled the following information about the chosen cost drivers Home Work Total Number of setups Number of inspections Number of machine hours 41 58 340 295 635 1,100 1,400 2,500 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.) Overhead Assigned 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 final answers to 2 decimal places.) Home Work Unit Cost
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