Burke and Hardaway were among five Wolverines who scored in a 16-2 run in the second half that put Michigan in control of the game.
The Wolverines (26-6) head to the Big Ten quarterfinals Friday against No. 23 Wisconsin. Penn State was eliminated from the tournament with a 10-21 record.
Penn State, with Sasa Borovnjak scoring eight points, owned a 14-3 lead 5 1/2 minutes into the game but Michigan wiped out that deficit for a 14-14 tie. The Nittany Lions went back up on D.J. Newbill's short shot but Michigan scored the next five points and never trailed again.
Penn State was within 46-45 with 15:03 to go before Hardaway set off the 16-2 run with a jump shot. By the time Jon Horford completed a three-point play with 10:23 to play, Michigan led 62-47.
Burke had three three-point shots in his game-high 21 points. Hardaway's 15-point effort was matched by Nik Stauskas. Mitch McGary had 10 points and 11 rebounds for Michigan.
Newbill had 20 points as Penn State's leading scored. Borovnjak added 15 and Ross Travis had 11 rebounds to go with 12 points.