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Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Work $ 48 Direct materials cost per unit
Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows:
Work $ 48 Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month Home $ 30 20 300 30 500 400 units 700 units Harbour has monthly overhead of $175,200, which is divided into the following cost pools Setup cost:s Quality control Maintenance $ 68,800 58,400 48,000 Total $175,200 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 100 340 390730 1,700 1,300 3,000 42 58 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 your 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 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
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