Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information...
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Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Direct materials cost per unit Direct labor cost per unit Expected production per month Sales price per unit Home $ 42 19 352 Work $ 70 32 585 780 units. 360 units Harbour has monthly overhead of $210,195, which is divided into the following activity pools: Setup costs Quality control Maintenance Total $ 81,340 69,355 59,500 $ 210,195 The company also has compiled the following information about the chosen cost drivers: Number of setups Number of inspections Number of machine hours Home 36 350 1,200 Work 62 365 2,300 Total 98 715 3,500 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Suppose Harbour uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Home Model Work Model Total Overhead Cost Overhead Assigned Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Direct materials cost per unit Direct labor cost per unit Expected production per month Sales price per unit Home $ 42 19 352 Work $ 70 32 585 780 units. 360 units Harbour has monthly overhead of $210,195, which is divided into the following activity pools: Setup costs Quality control Maintenance Total $ 81,340 69,355 59,500 $ 210,195 The company also has compiled the following information about the chosen cost drivers: Number of setups Number of inspections Number of machine hours Home 36 350 1,200 Work 62 365 2,300 Total 98 715 3,500 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Suppose Harbour uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Home Model Work Model Total Overhead Cost Overhead Assigned
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Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
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