Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows:
Home
Work
Direct materials cost per unit
$
38
$
67
Direct labor cost per unit
15
36
Sales price per unit
354
573
Expected production per month
700
units
450
units
Harbour has monthly overhead of $202,070, which is divided into the following cost pools:
Setup costs
$
81,620
Quality control
63,450
Maintenance
57,000
Total
$
202,070
The company has also compiled the following information about the chosen cost drivers:
Home
Work
Total
Number of setups
38
68
106
Number of inspections
350
355
705
Number of machine hours
1,500
1,500
3,000
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.)
Overhead Assigned:
Home Model
Work Model
Total Overhead Cost
$
2.
Calculate the production cost per unit for each of Harbour
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!