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 $ $18\mathrm{.}20$ $ $27\mathrm{.}70$

Direct labor cost per unit $14\mathrm{.}5017\mathrm{.}20$

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

Expected production per month $1,170$ units $990$ units

Keller has monthly overhead of $$10,851,$ which is divided into the following cost pools:

Setup costs $ $1,890$

Quality control $5,265$

Maintenance $3,696$

Total $ $10,851$

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

Sandy Beach Rocky River Total

Number of setups $141630$

Number of inspections $100350450$

Number of machine hours $1,6501,6503,300$

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.$)$