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Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River. Basic production information follows: Direct materials cost per unit Direct
Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River. Basic production information follows: Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month Sandy Beach $ 18.70 Rocky River $ 27.10 13.70 84.00 1,230 units 18.40 105.00 910 units Keller has monthly overhead of $10,726, which is divided into the following activity pools: Setup costs Quality controll Maintenance Total $ 1,890 6,136 $ 10,726 2,700 The company also has compiled the following information about the chosen cost drivers: Sandy Rocky Beach River Number of setups 16 Number of inspections Number of machine hours 120 1,350 14 400 1,350 Total 30 520 2,700 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.. 2. Calculate the production cost per unit for each of Keller's products under a traditional costing system. 3. Calculate Keller's gross margin per unit for each product under the traditional costing system. 4. Select the appropriate cost driver for each activity pool and calculate the activity rates if Keller wanted to implement an ABC system. 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. 6. Calculate the production cost per unit for each of Keller's products with an ABC system. 7. Calculate Keller's gross margin per unit for each product under an ABC system. 8. Compare the gross margi of each product under the traditional system and ABC. Complete this question by entering your answers in the tabs below. 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. 2. Calculate the production cost per unit for each of Keller's products under a traditional costing system. 3. Calculate Keller's gross margin per unit for each product under the traditional costing system. 4. Select the appropriate cost driver for each activity pool and calculate the activity rates if Keller wanted to implement an ABC 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. 6. Calculate the production cost per unit for each of Keller's products with an ABC system. 7. Calculate Keller's gross margin per unit for each product under an ABC system. 8. 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 1 Required 2 Required 3 Required 4 Required 5 Required 6 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. Sandy Beach Model Overhead Assigned Rocky River Model Total Overhead Cost $ 0 Required 1 Required 2 > Number of setups Number of inspections Number of machine hours Required: 16 14 30 120 1,350 400 1,350 520 2,700 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. 2. Calculate the production cost per unit for each of Keller's products under a traditional costing system. 3. Calculate Keller's gross margin per unit for each product under the traditional costing system. 4. Select the appropriate cost driver for each activity pool and calculate the activity rates if Keller wanted to implement an ABC sys 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. 6. Calculate the production cost per unit for each of Keller's products with an ABC system. 7. Calculate Keller's gross margin per unit for each product under an ABC system. 8. Compare the gross margi of each product under the traditional system and ABC. Complete this question by entering your answers in the tabs below. es Required 11 Required 6 Required 7 Required 8 Required 2 Required 3 Required 4 Required 5 Calculate the production cost per unit for each of Keller's products under a traditional costing system. Note: Round your intermediate calculations and final answers to 2 decimal places. Unit Cost Sandy Beach Rocky River < Required 1 Required 3> Number of setups Number of inspections Number of machine hours Required: 16 14 30 120 1,350 400 1,350 520 2,700 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. 2. Calculate the production cost per unit for each of Keller's products under a traditional costing system. 3. Calculate Keller's gross margin per unit for each product under the traditional costing system. 4. Select the appropriate cost driver for each activity pool and calculate the activity rates if Keller wanted to implement an ABC system. 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. 6. Calculate the production cost per unit for each of Keller's products with an ABC system. 7. Calculate Keller's gross margin per unit for each product under an ABC system. 8. 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 1 Required 2 Required's Required 4 Required 5 Required 6 Required 7 Required 8 Calculate Keller's gross margin per unit for each product under the traditional costing system, Note: Round your intermediate calculations and final answers to 2 decimal places. Gross Margin Sandy Beach Rocky River Number of setups Number of inspections Number of machine hours Required: 16. 14 30 120 1,350 400 1,350 520 2,700 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. 2. Calculate the production cost per unit for each of Keller's products under a traditional costing system. 3. Calculate Keller's gross margin per unit for each product under the traditional costing system. 4. Select the appropriate cost driver for each activity pool and calculate the activity rates if Keller wanted to implement an ABC system. 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. 6. Calculate the production cost per unit for each of Keller's products with an ABC system. 7. Calculate Keller's gross margin per unit for each product under an ABC system. 8. Compare the gross margi of each product under the traditional system and ABC. Complete this question by entering your answers in the tabs below. ences Required 1 Required 2 Required 31 Required 4 Required S Required 6 Required 7 Required 8 Select the appropriate cost driver for each activity pool and calculate the activity rates if Keller wanted to implement an ABC system. Note: Round your answers to 2 decimal places. Setup Cost Quality Control Maintenance Number of setups Number of inspections Number of machine hours Required: 16 14 30 120 1,350 400 1,350 520 2,700 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. 2. Calculate the production cost per unit for each of Keller's products under a traditional costing system. 3. Calculate Keller's gross margin per unit for each product under the traditional costing system. 4. Select the appropriate cost driver for each activity pool and calculate the activity rates if Keller wanted to implement an ABC system. 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. 6. Calculate the production cost per unit for each of Keller's products with an ABC system. 7. Calculate Keller's gross margin per unit for each product under an ABC system. 8. 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 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Assuming an ABC system, assign overhead costs to each product based on activity demands. Note: Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount. Setup Cost Quality Control Maintenance Overhead Assigned To Sandy Beach Overhead Assigned i To Rocky River Total Overhead Cost $ 0 $ 0 Number of setups Number of inspections Number of machine hours Required: 16 14 30 120 1,350 400 1,350 520 2,700 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. 2. Calculate the production cost per unit for each of Keller's products under a traditional costing system. 3. Calculate Keller's gross margin per unit for each product under the traditional costing system. 4. Select the appropriate cost driver for each activity pool and calculate the activity rates if Keller wanted to implement an ABC system. 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. 6. Calculate the production cost per unit for each of Keller's products with an ABC system. 7. Calculate Keller's gross margin per unit for each product under an ABC system. 8. 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 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Calculate the production cost per unit for each of Keller's products with an ABC system. Note: Round your intermediate calculations and final answers to 2 decimal places. Unit Cost Sandy Beach Rocky River Number of setups Number of inspections Number of machine hours Required: 16 14 30 120 1,350 400 1,350 520 2,700 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. 2. Calculate the production cost per unit for each of Keller's products under a traditional costing system. 3. Calculate Keller's gross margin per unit for each product under the traditional costing system. 4. Select the appropriate cost driver for each activity pool and calculate the activity rates if Keller wanted to implement an ABC syster 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. 6. Calculate the production cost per unit for each of Keller's products with an ABC system. 7. Calculate Keller's gross margin per unit for each product under an ABC system. 8. 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 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Calculate Keller's gross margin per unit for each product under an ABC system. Note: Round your intermediate calculations and final answers to 2 decimal places. Gross Margin Sandy Beach Rocky River < Required 6 Required 8 > Number of setups Number of inspections Number of machine hours Required: 16 14 30 120 1,350 400 1,350 520 2,700 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. 2. Calculate the production cost per unit for each of Keller's products under a traditional costing system. 3. Calculate Keller's gross margin per unit for each product under the traditional costing system. 4. Select the appropriate cost driver for each activity pool and calculate the activity rates if Keller wanted to implement an ABC system. 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. 6. Calculate the production cost per unit for each of Keller's products with an ABC system. 7. Calculate Keller's gross margin per unit for each product under an ABC system. 8. Compare the gross margi of each product under the traditional system and ABC. Complete this question by entering your answers in the tabs below. ences: Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Compare the gross margi of each product under the traditional system and ABC. Note: Round your answers to 2 decimal places. Gross Margin (Traditional) Gross Margin (ABC) Sandy Beach Rocky River < Required 7 Required>
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