sive problem Saved 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: poat per units 22576 s 42 Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month 700 units 420 units Harbour has monthly overhead of $215.700, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 90,200 69,500 56,000 $215,700 The company has also compiled the following Information about the chosen cost drivers: 70118 Number of setups Number of inspections Number of machine hours 330 Total 110 365695 1.300 2.800 1,500 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.) hensive problem Number of setups Number of inspections Number of machine hours 40 3 30 1,500 79 365 1,300 1 10 695 2.889 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 s 2. Calculate the production cost per unit for each of Harbour's products under traditional costing system (Round your intermediate calculations and final answers to 2 decimal places Home Work Unit Cost 3. Calculate Harbour's gross margin per unit for each product under the traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Select the appropriate cost driver for each cost pool and calculate the activityrates if Harbour wanted to implement an ABC system. Setup Costs Quality Control Maintenance 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. Overhead Assigned Overhead Assigned To Home To Work Setup Costs Quality Control Maintenance Total Overhead Cost SEO SEO 6. Calculate the production cost per unit for each of Harbour's products in an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.) Home Work Unit Cost 7. Calculate Harbour's gross margin per unit for each product under an ABC system (Round your intermediate calculations and final answers to 2 decimal places.) Home Work Gross Margin 8. Compare the gross margin of each product under the traditional system and ABC. (Round your answers to 2 decimal places.) Home Work Gross Margin (Traditional) Gross Margin (ABC)