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

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Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows:
Home Work Direct materials cost per unit $ 44 $ 71 Direct labor cost per unit 18 34 Sales price per unit 365 574 Expected production per month 800 units 350 units

Harbour has monthly overhead of $180,010, which is divided into the following cost pools: Setup costs $ 79,050 Quality control 65,760 Maintenance 35,200 Total $ 180,010

The company has also compiled the following information about the chosen cost drivers:
Home Work Total Number of setups 44 49 93 Number of inspections 340 345 685 Number of machine hours 1,300 1,900 3,200

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 ABC. (Round your answers to 2 decimal places.)