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Last part of final question quick thumbs up thank you Keller has monthly overhead of $11,876, which is divided into the following cost pools: $
Last part of final question quick thumbs up thank you
Keller has monthly overhead of $11,876, which is divided into the following cost pools: $ 2,170 Setup costs Quality control Maintenance Total 3,706 $ 11,876 The company has also compiled the following information about the chosen cost drivers: Sandy Beach Number of setups Number of inspections Number of machine hours Rocky River 17 300 1,700 Total 35 500 3,400 200 1,700 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.) Sandy Beach Model Rocky River Model Total Overhead Cost Overhead Assigned | $ 5,938 $ 5,938 $ 11,876 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 $ 37.87 $ 51.53 Unit Cost 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 $19.90 $26.80 Direct labor cost per unit 13.10 18.20 Sales price per unit 83.70 105.00 Expected production per month 1,220 units 910 units Keller has monthly overhead of $11,876, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 2,170 6,000 3,706 $ 11,876 The company has also compiled the following information about the chosen cost drivers: Sandy Beach Number of setups Number of inspections Number of machine hours 200 1,700 Rocky River 17 300 1,700 Total 35 500 3,400 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 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)Step by Step Solution
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