Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River....
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Accounting
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 per unit
$
19.30
$
26.60
Direct labor cost per unit
14.80
19.10
Sales price per unit
83.40
105.00
Expected production per month
1,200
units
910
units
Keller has monthly overhead of $11,104, which is divided into the following cost pools:
Setup costs
$
2,400
Quality control
5,766
Maintenance
2,938
Total
$
11,104
The company has also compiled the following information about the chosen cost drivers:
Sandy Beach
Rocky River
Total
Number of setups
11
29
40
Number of inspections
180
285
465
Number of machine hours
1,300
1,300
2,600
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.)
Overhead assinged
Sandy Beach
Rocky River
Total Overhead
Please explain how you got this and not just answer. Thank you and will give you a thumbs up
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