PA4-4 (Static) 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: Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month Sandy Beach $ 20 15 Rocky River $ 28 19 90 1,200 units 70 960 units Keller has monthly overhead of $22,360, which is divided into the following activity pools Quality control Setup costs Maintenance Total $5,200 11,000 6,160 $ 22,360 The company also has compiled the following information about the chosen cost drivers Number of setups Number of inspections Number of machine hours Sandy Beach Rocky River 14 26 140 1,400 300 1,400 Total 40 440 2,800 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. 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 syster 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 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.. Sandy Beach Model Rocky River Model Total Overhead Cost Overhead Assigned 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 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 Select the appropriate cost driver for each actively pool and calculate the activity rates if Keller wanted to implement an ABC system. Note: Round your answers to 2 decimal places. Setup Costs Quality Control Maintenance Show less A 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 amour Setup Cost Quality Control Maintenance Total Overhead Cost Overhead Assigned Overhead Assigned To Sandy Beach To Rocky River 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. Sandy Beach Rocky River Unit Cost 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 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