d Fie a Phone Ix Asurion Bootcamp Quizx C Cambridge Man x M C O Not Secure ezto.

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d Fie a Phone Ix Asurion Bootcamp Quizx C Cambridge Man x M C O Not Secure ezto.mheducation.com/hm.tpx pps Bookmarks 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 Sales price per uni Expected production per month Home Work $ 43 $ 62 38 581 24 356 670 units 310 units Harbour has monthly overhead of $161,780, which is divided into the following cost pools: Setup costs Quality control $ 80,580 51,200 30,000 $ 161,780 Total The company has also compiled the following information about the chosen cost drivers Home Work Number of setups Number of inspections Number of machine hours 102 340 300 640 1,200 1,300 2,500 Required: 1. Suppose Harbour uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead ass ine. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) Overhead As Home Model Work Model: 161,779 8

Explanation / Answer

Solution 1:

Predetermined overhead rate based on machine hours = Estimated overhead / Estimated machine hours

= $161,780/2500 = $64.712 per machine hour

Overhead assigned to home tablet = 1200 * $64.712 = $77,654

Overhead assigned to Work tablet = 1300 * $64.712 = $84,126

Solution 2:

Solution 3:

Solution 4:

Solution 5:

Solution 6:

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Solution 8:

Computation of product cost per unit Particulars Home Work Direct material cost per unit $43.00 $62.00 Direct labor cost per unit $24.00 $38.00 Overhead cost per unit
Home - $77,654 / 670
Work - $84,126 / 310 $115.90 $271.37 Production cost per unit $182.90 $371.37

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