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Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Harbour has monthly overhead of $173,130, which is divided into the following activity pools: The company also has compiled the following information about the chosen cost drivers: 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. 2. Calculate the production cost per unit for each of Harbour's products under a traditional costing system. 3. Calculate Harbour's gross margin per unit for each product under the traditional costing system. 4. Select the appropriate cost driver for each activity pool and calculate the activity rates if Harbour wanted to implement an ABC system, 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. 6. Calculate the production cost per unit for each of Harbour's products in an ABC system. 7. Calculate Harbour's gross margin per unit for each product under an ABC system. 8. Compare the gross margin of each product under the traditional system and ABC. Complete this question by entering your answers in the tabs below. Suppose Harbour uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Complete this question by entering your answers in the tabs below. Calculate the production cost per unit for each of Harbour's products under a traditional costing system. Note: Round your intermediate calculations and final answers to 2 decimal places. Complete this question by entering your answers in the tabs below. Calculate Harbour's gross margin per unit for each product under the trod tional costing system. Noter Round vour intermediate calculations and final ansmers to 2 decirmal places. Select the appropriate cost driver for each activity pool and calculate the activity rates if Harbour wanted to implement an ABC system. Assuming an ABC system, assign overhead costs to each product based on activity demands. Calculate the production cost per unit for each of Harbour's products in an ABC system. Note: Round your intermediate calculations and final answers to 2 decimal places. Calculate Harbour's gross margin per unit for each product under an ABC system. Note: Round your intermediate calculations and final answers to 2 decimal places. Compare the gross margin of each product under the traditional system and ABC. Note: Round your answers to 2 decimal places
