Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 $19.90 $ 27.40 13.60 18.70 83.30 106.00 1.210 units 1,000 units Keller has monthly overhead of $11.982, which is divided into the following cost pools: Setup costs Quality control Haintenance Total $ 2,925 5,772 3.286 $11,982 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 19 200 1,550 Rocky River 26 285 1,550 Total 45 485 3.100 2. Calculate the production cost per unit for each of Keller's products under a traditional costing system (Round your intermediate calculations and final answers to 2 decimal places.) Sandy Beach Rocky River Unit Cost 3. Calculate Keller's gross margin per unit for each product under the traditional costing system (Round your intermediate calculations and final answers to 2 decimal places.) Sandy Beach Rocky River Gross Margin 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.) Setup Costs Quality Control Maintenance Setups Inspections Machine Hours 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 To Sandy Beach Overhead Assigned To Rocky River Setup Cost Quality Control Maintenance Total Overhead Cost 0 $ 0 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Enterprise Compliance Risk Management An Essential Toolkit For Banks And Financial Services

Authors: Saloni Ramakrishna

1st Edition

1118550285, 978-1118550281

More Books

Students also viewed these Accounting questions

Question

Understand developments in knowledge creation and management

Answered: 1 week ago

Question

Explain key ideas of workplace learning

Answered: 1 week ago

Question

Explain how HRD may be implemented

Answered: 1 week ago