PA4-4 (Algo) Selecting Cost Drivers, Assigning Costs Using Activity Rates [ LO 4-1, 4-3, 4-4, 4-6] Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River, Basic production information follows: ine company aiso has compiled the following information about the chosen cost drivers: 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, 2. Calculate the production cost per unit for each of Keller's products under a traditional costing system. 3. Calculate Keller's gross margin per unit for each product under the traditional costing system. 4. Select the appropriate cost driver for each octivity pool and calculate the activity rates if Keller wanted to implement an ABC system. 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. 6. Calculate the production cost per unit for each of Keller's products with an ABC system. 7. Calculate Keller's gross margin per unit for each product under an ABC system. 8. Compare the gross margi of each product under the traditional system and ABC. Complete this question by entering your answers in the tabs below. Suppose Keller uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhea assigned to each product line. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Calculate the production cost per unit for each of Keller's products under a traditional costing s Note: Round your intermediate calculations and final answers to 2 decimal places. Calculate Keller's gross margin per unit for each product under the traditional costing system. Note: Round your intermediate calculatigns and final answers to 2 decimal places. Select the appropriate cost driver for each activity pool and calculate the activity rates if Keller wanted to implement an ABC system. Note: Round your answers to 2 decimal places. Assuming an ABC system, assign overhead costs to each product based on activity demands. Note: Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount. Calculate the production cost per unit for each of Keller's products with an ABC system. Note: Round your intermediate calculations and final answers to 2 decimal places. Calculate Keller's gross margin per unit for each product under an ABC system. Note: Round your intermediate calculations and final answers to 2 decimal places. Compare the gross margi of each product under the traditional system and ABC. Note: Round your answers to 2 decimal places
