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
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 Bench $19.00 14.40 83.80 1.200 units Rocky River $ 27.50 18.20 107.00 920 units Keller has monthly overhead of $10,949, which is divided into the following cost pools: $ 2,320 Setup costs Quality control Maintenance Total 5.405 3.224 $ 10,00 The company has also compled the following information about the chosen cost drivers: Sand Beach Rocky River Total Number of setups 19 21 40 Nuber of inspections 160 310 470 Number of machine hours 1,650 1,560 3,100 Required: 1. Suppose Keller uses a traditional conting 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 Sandy Beach Model Rocky River Model 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 answers to comples) Sandy Beach Rocky River Ur 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 cost ng 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 ir Keller wanted to implement an ABC system. (Round your answers to 2 decimal places.) Soup Costs Quality Control Maintenance 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 Bandy Boach To Rocky River Setup Cost Quality Control Maintenanch Total Overhead Costs Os 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 Un 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) Sandy Beach Rocky River Gro Margin % 5 7 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) 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) BOOK

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

IT Auditing Using Controls To Protect Information Assets

Authors: Chris Davis, Mike Schiller, Kevin Wheeler

3rd Edition

1260453227, 978-1260453225

More Books

Students also viewed these Accounting questions

Question

9.3 Verify the expression given in (9.2.3) for var(MN).

Answered: 1 week ago