Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River. Basic production information follows: Direct materials, Sandy Beach Rocky River cost per unit $18.10. $ 27.90 Direct labor 13.30 18.70 cost per unit Sales price per unit 84.00 105.00 Expected production per 1,250 units. 950 units month Keller has monthly overhead of $11,171, which is divided into the following cost pools: Setup costs $1,995 Quality control 5,890 Maintenance 3,286 Total $11,171 The company has also compiled the following information about the chosen cost drivers: Sandy Rocky Total Beach River Number of setups 17 18 35 Number of 140 335 475 inspections Number of machine hours 1,550 1,550 3,100 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.) Overhead Assigned Sandy Beach $ Model 11,171 Rocky River $ 3,100 Model Total Overhead $ 14,271 Cost 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.) Sandy Beach Rocky River Unit Cost 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.) Setup Costs Quality Control Maintenance 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.) Overhead Assigned Overhead Assigned To Sandy Beach To Rocky River Setup Cost Quality Control Maintenance Total Overhead Cost $ 0 $ 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.) Unit Cost Sandy Beach Rocky River 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.) Gross Margin Sandy Beach Rocky River 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.) Overhead Assigned Overhead Assigned To Sandy Beach To Rocky River Setup Cost Quality Control Maintenance Total Overhead Cost $ 0 $ 0 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.) Unit Cost Sandy Beach Rocky River 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.) Gross Margin Sandy Beach Rocky River 8. Compare the gross margin per unit of each product under the traditional system and ABC. (Round your answers to 2 decimal places.) Gross Margin (Traditional) Gross Margin (ABC) Sandy Beach. Rocky River