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PA4-3 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
PA4-3 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 Home $ 39 351 Work $ 70 Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month 35 570 490 units 790 units Harbour has monthly overhead of $189,100, which is divided into the following cost pools Setup costs Quality control Maintenance $82,400 57,200 49,500 Total $189,100 The company has also compiled the following information about the chosen cost drivers Number of setups Number of inspections Number of machine hours Home Work Total 103 650 1,000 2,3003,300 59 310 340 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.) Overhead Assigned Home Model Work Model: Total Overhead Cost
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