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Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rates $ 6 per direct labor-hour $ 3 per
Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rates $ 6 per direct labor-hour $ 3 per machine-hour $ 45 per setup $ 150 per order $ 115 per shipment $ 875 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Total Expected Activity K425 M67 200 2,000 1,150 60 2,200 50 13 3 13 3 26 3 3 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Answer is complete but not entirely correct. K425 M67 Activity Cost Pool Supporting direct $ 6,900 $ 360 labor Machine processing Machine setups 6,600 150 585 135 Production orders 1,950 450 Shipments 338 X 345 Product sustaining 39 X 2,625 Total overhead cost $ 16,412 $ 4,065
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