Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River. Basic...

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Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River. Basic production information follows: Sandy Beach Direct materials cost per unit $19.70 Direct labor cost per unit Sales price per unit Rocky River $26.60 13.30 82.80 18.70 106.00 Expected production per month 1,210 units 980 units Keller has monthly overhead of $10,712, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 2,170 5,652 2,889 $10,712 The company has also compiled the following information about the chosen cost drivers: Sandy Beach Rocky River Total Number of setups 15 20 Number of inspections 160 315 Number of machine hours 1,350 1,350 35 475 2,700

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