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 $ $18\mathrm{.}30$ $ $27\mathrm{.}70$

Direct labor cost per unit $14\mathrm{.}9018\mathrm{.}90$

Sales price per unit $82\mathrm{.}80106\mathrm{.}00$

Expected production per month $1,240$ units $990$ units

Keller has monthly overhead of $$11,176,$ which is divided into the following cost pools:

Setup costs $ $1,830$

Quality control $6,050$

Maintenance $3,296$

Total $ $11,176$

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

Sandy Beach Rocky River Total

Number of setups $181230$

Number of inspections $170330500$

Number of machine hours $1,6001,6003,200$

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 Kellers products under a traditional costing system. $($Round your intermediate calculations and final answers to $2$ decimal places.$)$

$3.$ Calculate Kellers 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 Kellers products with an ABC system. $($Round your intermediate calculations and final answers to $2$ decimal places.$)$

$7.$ Calculate Kellers 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.$)$