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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 Expected production per month Sales price per unit Sandy Beach $ 20 Rocky River $28 15 19 70 1,200 units 90 960 units Keller has monthly overhead of $22,360, which is divided into the following activity pools: Setup costs Quality control Maintenance Total $5,200 11,000 6,160 $ 22,360 The company also has compiled the following information about the chosen cost drivers: Sandy Rocky Beach River Total Number of setups 14 Number of inspections 140 26 300 Number of machine hours: 1,400 1,400 40 440 2,800 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. Overhead Assigned Sandy Beach Model Rocky River Model Total Overhead Cost $ 0 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
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