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 $ 40 Work $ 65 25 351 38 577 650 units 440 units Harbour has monthly overhead of $178,460, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 84,460 57,600 36,400 $178,460 The company has also compiled the following information about the chosen cost drivers: Number of setups Number of inspections Number of machine hours Home 42 350 1,200 Work Total 61 103 290 1,400 640 2,600 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 d amount.) Home Model: Work Model: Total Overhead Cost Overhead Assigned 8. Compare the gross margin of each product under the traditional system and ABC. (Round your answers to 2 decimal places.) Gross Margin (Traditional) Gross Margin (ABC) Home Work