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Harbour Company makes two models of electronic tablets, the Home and the Work Basic procuction information follaws HomeWork $ 68 32 584 Direct materials cost
Harbour Company makes two models of electronic tablets, the Home and the Work Basic procuction information follaws HomeWork $ 68 32 584 Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month $ 42 15 350 740 units 360 units Harbour has monthly overhead of $179 870 which is divided into the following cost pools Setup costs Guality control Maintenance Total $ 84 000 68 870 27 000 $179 870 The company has also compited the following information about the chosen cost drivers. Home Work Tota Number of setu Number of inspections Number of machine hours 89 310400710 100100 2700 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 r calculations and round your final answers to the nearest whole dollar amount.) Overhead Assigne 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 answe Work Home 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 Work Home Gross Margin 4. Select the appropriate cost driver for each cost pool and calculate the activity rates 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 actvity demands Overhead Assigned To Home Overhead Assigned To Work Setup Coss Quality Control Maintenance Total Overhead Cost tinal answers to 2 decimal places.) production cost per unit for each of Harbour's products in an ABC system. (Round your intermediate calculations and tinal answers to 2 decimal places.) Home Unit Cost gin per uni or each product under an ABe system (Round your intermediate caleulations and final answers to 2 decimal places,) rgin per unit for ea 7. Calculate Harbour's gross ma Work Home Gross Margin a compare the gross margin of each product under the traditional system and ABC (Round your answers to 2 decimal places) Work Home Gross Margin (Traditional) Gross Margin (ABC)
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