Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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,
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 $ 65 35 578 $41 20 369 680 units 360 units Harbour has monthly overhead of $189,280, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 86,860 59,220 43,200 $189,280 The company has also compiled the following information about the chosen cost drivers: Number of setups Home 38 Work Total Number of inspections Number of machine hours. 300 1,700 63 405 1,000 101 705 2,700 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.) Overhead Assigned Home Model Work Model Total Overhead Cost $ 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started