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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 Sandy Beach Rocky River $ 27.40 $18.70 15.10 18.80 82.40 106.00 Expected production per month 1,250 units 910 units Keller has monthly overhead of $11,200, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 2,360 5,474 3,366 $11,200 The company has also compiled the following information about the chosen cost drivers: Number of setups Sandy Beach Rocky River 19 Total 21 40 Number of machine hours 140 1,650 305 1,650 445 3,300 Number of inspections 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 Total Overhead Cost Overhead Assigned
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