$ 91,300 Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Home Work $ 40 $ 6 Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month 17 32 363 574 620 units 330 units Harbour has monthly overhead of $186,075, which is divided into the following cost pools: Setup costs Quality control Maintenance 53,975 40, 800 $186,075 Total The company has also compiled the following information about the chosen cost drivers: Home Mork Total Number of setupa Number of inspections 38 72 110 330 305 635 Number of machine hours 1, 600 1,800 3,400 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 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.) 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.) Home Work Gross Margin 4. Select the appropriate cost driver for each cost pool and calculate the activity rates if Harbour wanted to implement an ABC system. Setup Costs Quality Control Maintenance
$ 91,300 Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Home Work $ 40 $ 6 Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month 17 32 363 574 620 units 330 units Harbour has monthly overhead of $186,075, which is divided into the following cost pools: Setup costs Quality control Maintenance 53,975 40, 800 $186,075 Total The company has also compiled the following information about the chosen cost drivers: Home Mork Total Number of setupa Number of inspections 38 72 110 330 305 635 Number of machine hours 1, 600 1,800 3,400 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 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.) 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.) Home Work Gross Margin 4. Select the appropriate cost driver for each cost pool and calculate the activity rates if Harbour wanted to implement an ABC system. Setup Costs Quality Control Maintenance
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...
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