Keller Company makes two models of battery$-$operated boats, the Sandy Beach and the Rocky River. Basic production information follows:

Sandy Beach Rocky River

Direct materials cost per unit $ $19\mathrm{.}60$ $ $26\mathrm{.}30$

Direct labor cost per unit $13\mathrm{.}4017\mathrm{.}60$

Sales price per unit $84\mathrm{.}00105\mathrm{.}00$

Expected production per month $1,210$ units $960$ units

Keller has monthly overhead of $$11,855,$ which is divided into the following cost pools:

Setup costs $ $2,135$

Quality control $6,240$

Maintenance $3,480$

Total $ $11,855$

The company has also compiled the following information about the chosen cost drivers:

Sandy Beach Rocky River Total

Number of setups $171835$

Number of inspections $140380520$

Number of machine hours $1,5001,5003,000$

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.$)$

$2.$ 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.$)$

$3.$ 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.$)$

$4.$ 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.$)$

$5.$ 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.$)$

$6.$ 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.$)$

$7.$ 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.$)$

$8.$ Compare the gross margin per unit of each product under the traditional system and ABC. $($Round your answers to $2$ decimal places.$)$