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$

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

$1$ points

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

$\backslash$table$[[,\backslash$table$[[$Sandy$],[$Beach$]],\backslash$table$[[$Rocky$],[$River$]],$Total$],[$Number of setups,$15,20,35],[$Number of inspections,$150,365,515],[$Number of machine hours,$1,550,1,550,3,100]]$

Required:

Suppose Keller uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line.

Calculate the production cost per unit for each of Keller's products under a traditional costing system.

Calculate Keller's gross margin per unit for each product under the traditional costing system.

Select the appropriate cost driver for each activity pool and calculate the activity rates if Keller wanted to implement an ABC system.

Assuming an ABC system, assign overhead costs to each product based on activity demands.

Calculate the production cost per unit for each of Keller's products with an ABC system.

Calculate Keller's gross margin per unit for each product under an ABC system.

Compare the gross margi of each product under the traditional system and ABC.

Complete this question by entering your answers in the tabs below.

Required $3$

Required $7$

Required $8$

Suppose Keller uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line.

Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.

$\backslash$table$[[,\backslash$table$[[$Overhead$],[$Assigned$]],],[$Sandy Beach Model,$$,5,587],[$Rocky River Model,$$587,],[$Total Overhead Cost,$$,11,174]]$