Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production...

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Accounting

Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows:

Home

Work

Direct materials cost per unit

$

38

$

67

Direct labor cost per unit

15

36

Sales price per unit

354

573

Expected production per month

700

units

450

units

Harbour has monthly overhead of $202,070, which is divided into the following cost pools:

Setup costs

$

81,620

Quality control

63,450

Maintenance

57,000

Total

$

202,070

The company has also compiled the following information about the chosen cost drivers:

Home

Work

Total

Number of setups

38

68

106

Number of inspections

350

355

705

Number of machine hours

1,500

1,500

3,000

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

$

2.

Calculate the production cost per unit for each of Harbour

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