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8 00 Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River, Basic production information follows: 25 Sandy Beach points

8 00 Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River, Basic production information follows: 25 Sandy Beach points Direct materials cost per unit $19.40 Rocky River $27.10 Direct labor cost per unit 14.70 Sales price per unit 04.00 18.00 106.00 Expected production per month 1,230 units 910 units eBook Keller has monthly overhead of $11,578, which is divided into the following cost pools: Print Setup costs $ 2,480 Quality control References Maintenance Total 5,290 3,908 $11,578 The company has also compiled the following information about the chosen cost drivers: Number of setups 14 100 Sandy Beach Rocky River Total 26 Number of inspections i 360 1,700 40 460 3,400, Number of machine hours Required: 1,700 1. Suppose Keller 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.) Overhead Assigned Sandy Beach Model Rocky River Model Total Overhead Cost $ 0 Chapter 4 Homework 8 00 Seved 2. Calculate the production cost per unit for each of Keller's products under a traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Sandy Beach Rocky River 25 points Unit Cost eBook Pr 3. Calculate Keller's gross margin per unit for each product under the traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places.) References Sandy Besch Rocky River Gross Margin 4. Select the appropriate cost driver for each cost pool and calculate the activity rates if Keller wanted to implement an ABC system. (Round your answers to 2 decimal places.) Setup Costs Quality Control Maintenance 8 00 25 points eBook Print References Saved 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Setup Cost Quality Control Maintenance Total Overhead Cost Overhead Assigned To Sandy Beach Overhead Assigned To Rocky River $ 0 S 6. Calculate the production cost per unit for each of Keller's products with an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.) Sandy Beach Rocky River Unit Cost Chapter 4 Homework 8 Saved 6. Calculate the production cost per unit for each of Keller's products with an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.) 25 points Sandy Beach Rocky River Unit Cost ellook Pri References 7. Calculate Keller's gross margin per unit for each product under an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.) Sandy Beach Rocky River Gross Margin 8. Compare the gross margin per unit of each product under the traditional system and ABC. (Round your answers to 2 decimal places.) Gross Margin (Traditional) Gross Margin (ABC) Sandy Beach Rocky River

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