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 $ 43 $ 62 23 30 364 585 610 units 410 units Harbour has monthly overhead of $157,380, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 72,680 56,100 28,600 $157,380 The company has also compiled the following information about the chosen cost drivers: Number of setups Number of inspections Number of machine hours Home 39 310 1,300 Work 53 350 1,300 Total 92 660 2,600