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Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Home Work 41 64 Direct materials cost per
Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Home Work 41 64 Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per montlh 17 352 660 units 480 units 580 Harbour has monthly overhead of $176,700, which is divided into the following cost pools: Setup costs Quality control Maintenance S 87,550 59,150 30,000 S176,700 Total The company has also compiled the following information about the chosen cost drivers: Number of setups Number of inspections Number of machine hours Home Work Total 103 310 650 1,500 1,000 2,500 62 340 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 Assigned Home Model: Work Model: Total Overhead Cost
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