Godo BookPrinterencesHarbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows:Direct materials cost per unitDirect labor cost per unitSales price per unitExpected production per monthHarbour has monthly overhead of $190,025, which is divided into the following activity pools:Setup costsQuality controlMaintenanceTotal$ 77,08066,44546,500$ 190,025Number of setupsNumber of inspectionsNumber of machine hoursHome36Home3501,400$ 4018356760 unitsThe company also has compiled the following information about the chosen cost drivers:Work583351,700WorkTotal946853,100$ 6731583400 unitsRequired:1. Suppose Harbour uses a traditional costing system with machine hours as the cost driver. Determine the amount of overheadassigned 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 rages if Harbour wanted to implement an ABCsystem.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.

Name: Godo BookPrinterencesHarbour Company makes two models of electronic ta
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Godo BookPrinterencesHarbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows:Direct materials cost per unitDirect labor cost per unitSales price per unitExpected production per monthHarbour