Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River. Basic production information follows: Sandy Beach Rocky River Direct materials cost per unit $ 19.00 $ 26.20 Direct labor cost per unit 13.70 17.80 Sales price per unit 82.90 105.00 Expected production per month 1,170 units 930 units Keller has monthly overhead of $11,482, which is divided into the following cost pools: Setup costs $ 2,880 Quality control 5,440 Maintenance 3,161 Total $ 11,482 The company has also compiled the following information about the chosen cost drivers: Sandy Beach Rocky River Total Number of setups 13 32 45 Number of inspections 110 355 465 Number of machine hours 1,450 1,450 2,900 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.) 2. Calculate the production cost per unit for each of Kellers products under a traditional costing system.(Round your intermediate calculations and final answers to 2 decimal places.) 3. Calculate Kellers gross margin per unit for each product under the traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places.) 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.) 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.) 6. Calculate the production cost per unit for each of Kellers products with an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.) 7. Calculate Kellers gross margin per unit for each product under an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.) 8. Compare the gross margin of each product under the traditional system and ABC. (Round your answers to 2 decimal places.)