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: Sandy Beach Rocky River Direct materials cost $19.40 $ 27.80 per unit Direct labor cost per 13.80 17.60 unit Sales price per unit 83.10 106.00 Expected production 1, 160 units 970 units per month Keller has monthly overhead of $10,796, which is divided into the following cost pools: Setup costs $ 2, 400 Quality control 5,596 Maintenance 2,800 Total $10, 796The company has also compiled the following information about the chosen cost drivers: Sandy Rocky Total Beach River Number of setups 19 21 40 Number of 140 315 455 inspections Number of machine 1, 400 1, 400 2,800 hours3. Calculate Keller's gross margin per unit for each product under the traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Sandy Beach Rocky River Gross Margin 54.50 $ 51.925. 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 Sandy Beach To Rocky River Setup Cost 1,140 1,280 Quality Control 1,722 3,875 Maintenance 3 Total Overhead Cost 2,863 5,136 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 S 2.47 5 5.297. 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 47.43 52.19 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) S 57.08 S 52.19 Gross Margin (ABC) 57.08 52.19