Hlution to question 8 Kelier Company makes two models of battery opened boats, the Sandy Beach and the Rocky River. Bask production information follow Sandy Beach Rocky River Direct saterials cost per unit $19.10 $26.90 Direct Labor cost per unit 13.60 17.68 Sales price per unit 33.80 105.00 Expected production per month 1,190 units 990 units Keller has monthly overhead of $12,072, which is divided into the following cost pools $ 2,800 6,110 Setup costs Quality control Maintenance Total $12,072 The company has also compiled the following information about the chosen cost drivers: Sandy Beach Rocky River Total Number of setups 11 39 50 Number of inspections 325 Number of machine hours 1,550 1,550 3,100 ses Required: 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) Nem Gestion 8 Required: 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) 25 points Answer is complete and correct. Overhead Assigned Sandy Beach Model 6.036 Rocky River Model 5 6.036 Total Overhead Cost 12072 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.) Answer is complete but not entirely correct. Sandy beach 41.85 Rocky River 56.69 Unit COM 00 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.) 25 Sandy Beach Rocky River Gross Margin 4. Select the appropriate cost driver for each cost pool and calculate the activity rates of Keller wanted to implement an ABC system (Round your answers to 2 decimal places.) Betup Cous Duality Control Maintenance 00 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.) 25 po Answer is not complete. Overhew Assigned Ord Aage Yolandy Beach To Rocky River Setup Cost Dirty Control Maintenance Tots Overhead Cost . 3 0 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 Rochy River Un Cost 8 7. Calculate Keller's gross mergin 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 per unit of each product under the traditional system and ABC Round your answers to 2 decimal places) Sandy be y love Gross Marin (Tradition Margin (ABC)
