Question: Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month Sandy Beach $ 20.00 13.80 83.30 1,160

Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month Sandy Beach $ 20.00 13.80 83.30 1,160 units Rocky River $ 27.20 18.80 106.00 940 units Keller has monthly overhead of $10,862, which is divided into the following activity pools: Setup costs Quality control Maintenance Total $ 1,960 5,400 3,502 $ 10,862 The company also has compiled the following information about the chosen cost drivers: Number of setups Number of inspections Number of machine hours Required: Sandy Rocky Beach River 13 200 1,700 22 250 1,700 Total 35 450 3,400 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 activity 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. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Suppose Keller uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. Note: 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 $ 0 Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Calculate the production cost per unit for each of Keller's products under a traditional costing system. Note: Round your intermediate calculations and final answers to 2 decimal places. Unit Cost Sandy Beach Rocky River < Required 1 Required 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Calculate Keller's gross margin per unit for each product under the traditional costing system. Note: Round your intermediate calculations and final answers to 2 decimal places. Gross Margin Sandy Beach Rocky River < Required 2 Required 4 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 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. Setup Cost Quality Control Maintenance < Required 3 Required 5 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 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. Setup Cost Quality Control Maintenance Total Overhead Cost $ Overhead Assigned To Sandy Beach Overhead Assigned To Rocky River < Required 4 0 $ 0 Required 6 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 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. Unit Cost Sandy Beach Rocky River < Required 5 Required 7 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 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. Gross Margin Sandy Beach Rocky River < Required 6 Required 8 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Compare the gross margi of each product under the traditional system and ABC. Note: Round your answers to 2 decimal places. Gross Margin (Traditional) Gross Margin (ABC) Sandy Beach Rocky River < Required 7 Required 8 >

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