PA4-3 Selecting Cost Drivers, Assigning Costs Using Activity Rates [LO 4-1, 4-3, 4-4, 4-6 ] Harbour Company makes two models of electronic tablets, the Home and the Work Basic production information follows: Home Work Direct materiale con perunt 5 36 $72 Direct labor cost per unit 16 40 Sales price per unit 351 581 Expected production per month 600 units 330 units Harbour has monthly overhead of $187.710, which is divided into the following cost pools Setup costs Quality control Maintenance Total $ 86.290 81.920 37.500 5187 710 The company has also compiled the following information about the chosen cost drivers: Home Work Number of 43 60 100 Number of actions 320 400 720 Number of mine hours 1,300 1.200 2.500 Required: 1. Suppon Harbour uses a traditional conting system wth 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 Cou 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 calculation and final answers to 2 decimal places.) Home Work Gross Margin 4. Select the appropriate cost drive for each cost pool and calculate the activity rates if Harbour wanted to implement an ABC system Setup Cool Quality Control Maintenance 5. Assuming an ASC system, assign overhead costs to each product based on activity demands Overhead Assigned Overhead Assigned To Home To Work Setup Costs Quality Control Maintenance Total Overhead Cost 6. Calculate the production cont per unit for each of Harbour's products in an ABC system. (Round your intermediate calculations and final answers to 2 decimal places) Home Work Unit Cost 7. Calculate Harbour's grose margin per unit for each product under an ABC system. (Round your intermediate calculations and final answers to 2 decimal places) Work Gross Margin 8. Compare the gross margin of each product under the traditional system and ABC. (Round your answers to 2 decimal places.) Home Work Gross Margin (Traditional) Gross Margin (ABC)