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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

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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 labor cost per unit sales price per unit Expected production per month Sandy Beach Rocky River $18.10 $ 27.50 14.00 18.10 83.80 106.ee 1,150 units 940 units Keller has monthly overhead of $11,171, which is divided into the following cost pools: a Setup costs Quality control Maintenance Total $ 2,320 5,800 3,051 $ 11,171 The company has also compiled the following Information about the chosen cost drivers: Number of setups Number of inspections Number of machine hours Sandy Beach 19 160 Rocky River 21 340 1,350 Total 40 500 2,700 1,350 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.) Overhead Assigned Overhead Assigned To Sandy Beach To Rocky River S 1,102 $ 1 218 $ 1,856 $ 3944 Setup Cost Quality Control Maintenance Total Overhead Cost S 2.958 $ 5,162 6. Calculate the production cost per unit for each of Keller's products with an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.) Sandy Beach Rocky River Unit Cost 7. Calculate Keller's gross margin per unit for each product under an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.) ho Sandy Beach Rocky River Gross Margin 8. Compare the gross margin per unit of each product under the traditional system and ABC. (Round your answers to 2 decimal places.) Sandy Beach Rocky River Gross Margin (Traditional) Gross Margin (ABC)

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