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ook sk Print PA4-3 (Algo) Selecting Cost Drivers, Assigning Costs Using Activity Rates [LO 4-1, 4-3, 4-4, 4-6 ] Harbour Company makes two models
ook sk Print PA4-3 (Algo) Selecting Cost Drivers, Assigning Costs Using Activity Rates [LO 4-1, 4-3, 4-4, 4-6 ] 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 $ 37 201 358 Work $66 36 566 780 units 340 units Harbour has monthly overhead of $180.590, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 78,960 59,630 42,000 $180,590 erences The company has also complied the following information about the chosen cost drivers: Number of setups Number of inspections Hone 41 320 Work Total 531 Number of machine hours 1,000 350 1,800 94 670 2,800 Required: 1. Suppose Harbour uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead
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