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i need help for parts 5-8 Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Direct materials
i need help for parts 5-8
Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month Home Work $36 $ 70 25 30 364 579 760 units 480 units 1 Harbour has monthly overhead of $191,440, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 81,340 67,200 42,900 $191, 440 The company has also compiled the following information about the chosen cost drivers: Number of setups Number of inspections Number of machine hours Home 41 330 1,200 Work Total 5798 370 700 2,100 3,300 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.) Home Model: 02 Overhead Assigned $ 69,612 $ 121,821 $ 191,433 Work Model: Total Overhead Cost mt 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 152.60 $ 353.80 ences 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.) Work Home 211.40 Gross Margin $ S 225.20 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 $ 830 Setups Inspections Quality Control $ 96 Maintenance Machine Hours $ 13 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. ces Overhead Assigned To Home Overhead Assigned To Work Setup Costs Quality Control Maintenance Total Overhead Cost $ 0 $ 0 Help S 6. Calculate the production cost per unit for each of Harbour's products in an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.) Home Work Unit Cost 29:19 ok 7. Calculate Harbour's gross margin per unit for each product under an ABC system (Round your intermediate calculations and final answers to 2 decimal places.) Home Work Gross Margin int rences 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 (Tradtional) Gross Margin (ABC) Step by Step Solution
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