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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 Work $ 42 $64 Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month 35 576 310 units 366 730 units Harbour has monthly overhead of $177,680, which is divided into the following cost pools Setup costs Quality control Maintenance $ 76,260 64,020 37,400 Total $177,680 The company has also compiled the following information about the chosen cost drivers Home Work Total 93 660 1,600 1,800 3,400 Number of setups Number of inspections Number of machine hours 36 310 57 350 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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