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
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