Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Home Work Direct materials cost per unit $ 37 $ 65 Direct labor cost per unit 17 38...

Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows:

	Home	Work
Direct materials cost per unit	$	37		$	65
Direct labor cost per unit		17			38
Sales price per unit		361			577
Expected production per month		680	units		300	units

Harbour has monthly overhead of $193,020, which is divided into the following cost pools:

Setup costs	$	86,670
Quality control		64,350
Maintenance		42,000
Total	$	193,020

The company has also compiled the following information about the chosen cost drivers:

	Home	Work	Total
Number of setups	38	69	107
Number of inspections	330	385	715
Number of machine hours	1,700	1,100	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.
(Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.)

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.)

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.)

4.
Select the appropriate cost driver for each cost 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.
(Round your intermediate calculations and final answers to 2 decimal places.)

7.
Calculate Harbour’s gross margin per unit for each product under an ABC system.
(Round your intermediate calculations and final answers to 2 decimal places.)

8. Compare the gross margin of each product under the traditional system and AB

Im confused on how to solve the problems 1-8 i had asked this previously and did not get the answer i needed im still getting it incorrect

Extracted text: E4-4 Assigning Costs Using Activity Rates [LO 4-4] Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Total Cost Estimated Cost Driver Activity Cost Pools Machining Designing costs Setup costs of Pool Cost Driver $183,300 47,725 71,150 Number of machine hours 61,100 5,750 500 Number of design hours Number of batches Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A Product B Product C 21,000 2,300 60 31,000 1,350 180 9,100 2,100 260 Number of machine hours Number of design hours Number of batches Required: Using activity rates, determine the amount of overhead assigned to each product. (Round activity rates to 2 decimal places. Round your other intermediate calculations and final answer to the nearest whole dollar amount.) Total Overhead Assigned 89,920 Product A $ $ Product B 129,360 Product C 81,020


Extracted text: 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 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. Overhead Assigned To Work Overhead Assigned To Home Setup Costs Quality Control Maintenance 0$ $ 0 Total Overhead Cost