Question: Please answer each part and show work, I want to see how its done and see if I can get the same answer. Thanks! Keller
Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River. Basic production information follows Sandy Rocky River Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month $20.00 27.60 18.80 106.00 13.10 82.20 1,250 units 930 units Keller has monthly overhead of $12,007, which is divided into the following cost pools Setup costs Quality control $ 2,560 6,572 S 12,007 The company has also compiled the following information about the chosen cost drivers: Sand Beach Rocky River 24 Number of setups Number of inspections Number of machine hours 16 180 1,250 350 530 1250 2,500 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 Ovethead Cost 8
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