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: 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 $ 19.30 $ 26.60
Direct labor cost per unit 14.80 19.10
Sales price per unit 83.40 105.00
Expected production per month 1,200 units 910 units

Keller has monthly overhead of $11,104, which is divided into the following cost pools:

Setup costs $ 2,400
Quality control 5,766
Maintenance 2,938
Total $ 11,104

The company has also compiled the following information about the chosen cost drivers:

Sandy Beach Rocky River Total
Number of setups 11 29 40
Number of inspections 180 285 465
Number of machine hours 1,300 1,300 2,600

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 and round your final answers to the nearest whole dollar amount.)

Overhead assinged

Sandy Beach

Rocky River

Total Overhead

Please explain how you got this and not just answer. Thank you and will give you a thumbs up

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

Financial Accounting For School Administrators Tools For School

Authors: Ronald E. Everett, Donald R. Johnson, Bernard W. Madden

3rd Edition

1610487710, 978-1610487719

More Books

Students also viewed these Accounting questions

Question

Describe effectiveness of reading at night?

Answered: 1 week ago

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago