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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 $ 42 $ 70 Direct labor cost per unit 17 30 Sales price per unit 353 579 Expected production per month 670 units 430 units Harbour has monthly overhead of $176,615, which is divided into the following activity pools: Setup costs $ 75, 600 Quality control 67,415 Maintenance 33,600 Total $ 176, 615 The company also has compiled the following information about the chosen cost drivers: Home Work Total Number of setups 38 52 90 Number of inspections 310 385 695 Number of machine hours 1, 100 1,700 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. 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 rates if Harbour wanted to implement an ABC system. 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.Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Calculate the production cost per unit for each of Harbour's products under a traditional costing system. Note: Round your intermediate calculations and final answers to 2 decimal places. Home Work Unit CostCalculate Harbour's gross margin per unit for each product under the traditional costing system. Note: Round your intermediate calculations and final answers to 2 decimal places. Home Work Gross MarginSelect the appropriate cost driver for each activity pool and calculate the activity rates if Harbour wanted to implement an ABC system. Setup Costs Quality Control MaintenanceAssuming an ABC system, assign overhead costs to each product based on activity demands. Overhead Overhead Assigned Assigned To Home To Work Setup Costs Quality Control Maintenance Total Overhead CostCalculate the production cost per unit for each of Harbour's products in an ABC system. Note: Round your intermediate calculations and final answers to 2 decimal places. Home Work nit CostNote: Round your intermediate calculations and final answers to 2 decimal places. Home Work Gross Margin\f

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