Question

answer this question fully please/ following my tamplate

Harbour Company makes two models of electronic tablets, the Home and the Work Basic production informat follows: Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month 589 8 units 409 units Harbour has monthly overhead of $175,200, which is divided into the following cost pools: Setup costs Quality control Maintenance $ 68,800 58,480 48,000 $175,200 The company has also compiled the following information about the chosen cost drivers: Number of setups umber of inspections mber of machine hours 58 Required: all 1. Suppose Harbour uses a traditional costing system with machine hours as the cost driver. Determine the amount ilofloverhead assigned to each product lines (Do not round Intermediate calculations and round your final answers to the nearest whole dollar amount.) erhead Assier

Answer 1

1
Overhead rate	Estimated manufacturing overhead/Machine hours
Overhead rate	175200/3000
Overhead rate	$58.40	per MH
Overhead assigned	Home	Work
No of machine hours	1700	1300
Overhead rate	$58.40	$58.40
Overhead assigned	$99,280	$75,920
2
Calculation of production costs per unit
	Home	Work
Direct material	$30.00	$48.00
Direct labor	$20.00	$30.00
Manufacturing overhead	$141.83	$189.80
	(99280/700)	(75920/400)
Production costs per unit	$191.83	$267.80
3
Calculation of gross margin per unit
	Home	Work
Selling price per unit	$300.00	$500.00
Less: Production costs	$191.83	$267.80
Gross margin per unit	$108.17	$232.20
4
Activity rate	Activity costs/Volume of activity
Setup costs	68800/100	$688	per setups
Quality control	58400/730	$80	per inspection
Maintenance	48000/3000	$16	per MH
5
Calculation of overhead assigned to each product
	Home	Work
Setup costs (688*42; 688*48)	$28,896	$33,024
Quality control (80*340; 80*390)	$27,200	$31,200
Maintenance (1,700*16; 1,300*16)	$27,200	$20,800
Total overhead assigned	$83,296	$85,024
6
Calculation of production costs per unit
	Home	Work
Direct material	$30.00	$48.00
Direct labor	$20.00	$30.00
Manufacturing overhead	$118.99	$212.56
	(83296/700)	(85024/400)
Production costs per unit	$168.99	$290.56
7
Calculation of gross margin per unit
	Home	Work
Selling price per unit	$300.00	$500.00
Less: Production costs	$168.99	$290.56
Gross margin per unit	$131.01	$209.44
8
	Home	Work	Difference as compared to traditional method
Gross margin (Traditional)	$108.17	$232.20	-$124.03
Gross margin (ABC)	$131.01	$209.44	-$78.43