Chapter 6-3

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		$8.00	per direct labor-hour
Machine processing		$4.00	per machine-hour
Machine setups		$50.00	per setup
Production orders		$170.00	per order
Shipments		$120.00	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	1,025	40
Machine-hours	2,600	30
Machine setups	19	3
Production orders	19	3
Shipments	38	3
Product sustaining	3	3

Required:

Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system.

Activity Cost PoolK425M67Supporting direct laborMachine processingMachine setupsProduction ordersShipmentsProduct sustainingTotal overhead cost