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4. Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates:
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Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Activity Rates Supporting direct labor $ 10 per direct labor-hour Machine processing $ 4 per machine-hour Machine setups $ 35 per setup Production orders $ 150 per order Shipments $ 115 per shipment Product sustaining $ 900 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hour Machine-hours Machine setups Production orders Shipments Product sustaining Total Expected Activity K425 M67 200 2,000 925 40 2,200 30 5 2 5 2 10 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity based costing pystem? K425 M67 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost $ 0 $ 0 Step by Step Solution
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