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 Work $ 38 $ 66 16 36 359 571 770 units 340 units Harbour has monthly overhead of $186,945, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 79,380 65,565 42, ea $186,945 The company has also compiled the following information about the chosen cost drivers: Home work Number of setups Number of inspections Number of machine hours 340 1,200 365 Total 98 705 2,800 1,600 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 Work Model Overhead Assigned $ 80.124 $ 106.832 $ 186956 Total Overhead Cost 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. Setup Costs Quality Control Maintenance Total Overhead Cost Overhead Assigned Overhead Assigned To Home To Work $ 810 $ 705 $ 42000 $ 43,515 $ 6. Calculate the production cost per unit for each of Harbour's products in an ABC system. (Round your intermediate calculations final answers to 2 decimal places.) Home Work Unit Cosi 7. Calculate Harbour's gross margin per unit for each product under an ABC system. (Round your intermediate calculations and fin answers to 2 decimal places.) Home Work George 8. Compare the gross margin of each product under the traditional system and ABC. (Round your answers to 2 decimal places.) Work Gross Margot Cross Morgan (ABC