Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows:      Home Work Direct materials cost per unit $ 37   $ 65   Direct labor cost per unit   17     38   Sales price per unit   361     577   Expected production per month   680  units   300  units        Harbour has monthly overhead of $193,020, which is divided into the following cost pools:          Setup costs $ 86,670 Quality control   64,350 Maintenance   42,000 Total $ 193,020            The company has also compiled the following information about the chosen cost drivers:          Home Work Total Number of setups 38 69 107 Number of inspections 330 385 715 Number of machine hours 1,700 1,100 2,800     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.)           2. Calculate the production cost per unit for each of Harbour’s products under a traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places.)     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.)  I keep getting this problem wrong. hwo do you work it?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
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Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows:
   

  Home Work
Direct materials cost per unit $ 37   $ 65  
Direct labor cost per unit   17     38  
Sales price per unit   361     577  
Expected production per month   680  units   300  units
 

    

Harbour has monthly overhead of $193,020, which is divided into the following cost pools: 

 

     
Setup costs $ 86,670
Quality control   64,350
Maintenance   42,000
Total $ 193,020
 

        

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

  Home Work Total
Number of setups 38 69 107
Number of inspections 330 385 715
Number of machine hours 1,700 1,100 2,800
 

 

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.)

 

 

 

    
2. Calculate the production cost per unit for each of Harbour’s products under a traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places.)

 

 

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.)
 

I keep getting this problem wrong. hwo do you work it?

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