Question
Chap 7 Q 3 Klumper Corporation is a diversified manufacturer of industrial goods. The companys activity based costing system contains the following six activity cost
Chap 7 Q 3
| Klumper Corporation is a diversified manufacturer of industrial goods. The companys activity based costing system contains the following six activity cost pools and activity rates: |
| Activity Cost Pool | Activity Rates | ||
| Supporting direct labor | $9.00 | per direct labor-hour | |
| Machine processing | $4.00 | per machine-hour | |
| Machine setups | $50.00 | per setup | |
| Production orders | $170.00 | per order | |
| Shipments | $110.00 | per shipment | |
| Product sustaining | $775.00 | per product | |
| Activity data have been supplied for the following two products: |
| Total Expected Activity | |||
| K425 | M67 | ||
| Number of units produced per year | 200 | 2,000 | |
| Direct labor-hours | 1,050 | 40 | |
| Machine-hours | 2,400 | 30 | |
| Machine setups | 7 | 1 | |
| Production orders | 7 | 1 | |
| Shipments | 14 | 1 | |
| Product sustaining | 1 | 1 | |
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Padhukas Students Handbook On Auditing And Assurance Including Multiple Choice Questions For CA Inter
Authors: CA G. Sekar, CA B Saravana Prasath
18th Edition
9390303087, 978-9390303083
