Required: Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River. Basic

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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 Setup costs Quality control Maintenance Total Sandy Beach Rocky River $26.40 $ 2,560 5,236 3,186 $ 10,982 Number of setups Number of inspections Number of machine hours $19.00 13.20 82.40 1,230 units Keller has monthly overhead of $10,982, which is divided into the following cost pools: 18.40 106.00 998 units The company has also compiled the following information about the chosen cost drivers: Total Sandy Beach Rocky River 11 29 40 130 310 440 1,350 1,350 2,700 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 Setup costs Quality control Maintenance Total Sandy Beach Rocky River $26.40 $ 2,560 5,236 3,186 $ 10,982 Number of setups Number of inspections Number of machine hours $19.00 13.20 82.40 1,230 units Keller has monthly overhead of $10,982, which is divided into the following cost pools: 18.40 106.00 998 units The company has also compiled the following information about the chosen cost drivers: Total Sandy Beach Rocky River 11 29 40 130 310 440 1,350 1,350 2,700

Answer rating: 100% (QA)

Answer 1 Overhead Assigned under Traditional Costing System Using machine hours as the cost driver S... View the full answer