Keller Company makes two models of battery$-$operated boats, the

Sandy Beach and the Rocky River. Basic production information

follows:

$$Keller has monthly overhead of $$10,903,$ which is divided into

the following cost pools:$$The company has also compiled the following information about

the chosen cost drivers:$$

$1.$ 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.$)$

$$

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

$\backslash$table$[[,$Sandy Beach,Rocky River$],[$Direct materials cost per unit,$$18\mathrm{.}50,$$$26\mathrm{.}30$