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Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River. Basic production information follows: Sandy Beach Direct materials cost
Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River. Basic production information follows: Sandy Beach Direct materials cost per unit Direct labor cost per unit Sales price per unit $19.10 Rocky River $ 26.30 13.40 83.80 Expected production per month 1,200 units 18.10 105.00 1,000 units Keller has monthly overhead of $11,109, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 2,065 5,950 3,094 $ 11,109 The company has also compiled the following information about the chosen cost drivers: Sandy Beach Rocky River Total Number of setups 16 19 35 Number of inspections Number of machine hours 140 1,300 360 1,300 500 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.)
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