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Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: 2 Direct materials cost per unit Direct labor
Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: 2 Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month Home Work $ 42 $ 69 21 38 351 582 730 units 320 units :31:25 Harbour has monthly overhead of $183,290, which is divided into the following cost pools: . Setup costs Quality control Maintenance Total $ 85, 680 64,610 33,000 $183,290 ok nt The company has also compiled the following information about the chosen cost drivers: ences Number of setups Number of inspections Number of machine hours Home 43 330 1,300 Work 59 380 1,700 Total 102 710 3,000 8. 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) Graw
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