Question
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
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 $ 19.90 $ 26.50 Direct labor cost per unit 14.70 17.80 Sales price per unit 83.20 106.00 Expected production per month 1,210 units 950 units Keller has monthly overhead of $10,888, which is divided into the following cost pools: Setup costs $ 2,170 Quality control 5,688 Maintenance 3,030 Total $ 10,888 The company has also compiled the following information about the chosen cost drivers: Sandy Beach Rocky River Total Number of setups 18 17 35 Number of inspections 150 305 455 Number of machine hours 1,500 1,500 3,000 Required:
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.)
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