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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
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 Rocky River $ 27.20 Sandy Beach $18.70 14.90 82.40 18.00 105.00 1,180 units 940 units Keller has monthly overhead of $11,538, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 2,400 6,195 2,943 $11,538 The company has also compiled the following information about the chosen cost drivers: Number of setups Sandy Beach Rocky River Total 17 23 40 Number of inspections Number of machine hours 130 1,350 395 1,350 525 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. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) Sandy Beach Model Rocky River Model Overhead Assigned Total Overhead Cost $
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