Question: PA4-3 (Static) Selecting Cost Drivers, Assigning Costs Using Activity Rates [LC Harbour Company makes two models of electronic tablets, the Home and the Work.

PA4-3 (Static) Selecting Cost Drivers, Assigning Costs Using Activity Rates [LC Harbour

PA4-3 (Static) Selecting Cost Drivers, Assigning Costs Using Activity Rates [LC Harbour Company makes two models of electronic tablets, the Home and the Work. Basic productic Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month Home $ 30 Work $ 48 20 30 300 500 700 units 400 units Harbour has monthly overhead of $175,200, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 68,800 58,400 48,000 $175,200 2 The company has also compiled the following information about the chosen cost drivers Number of setups Home 42 Work Total 58 100 Number of inspections 340 390 730 Number of machine hours 1.700 1.300 3.000

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