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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
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 $19.90 14.60 83.90 1,240 units Rocky River $ 28.10 18.70 106.00 970 units Keller has monthly overhead of $12,056, which is divided into the following cost pools: $ 2,320 6,088 Setup costs Quality control Maintenance Total 3,648 $ 12,056 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 1,600 Rocky River 21 295 1,600 Total 40 495 200 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 Assigned $ 5,858 Sandy Beach Model Rocky River Model $ 5,585 11,443 Total Overhead Cost $ 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
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