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Chapter 7 Homework 7 Saved 5 Exercise 7.4 Second-Stage Allocation (LO7-4) 14 points Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based
Chapter 7 Homework 7 Saved 5 Exercise 7.4 Second-Stage Allocation (LO7-4) 14 points 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: eBook Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rates $ 8 per direct labor-hour $ 4 per machine-hour $ 45 per setup $ 17e per order 125 per shipment $ see per product Hint Activity data have been supplied for the following two products: Print r References Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Total Expected Activity K425 M67 200 2,888 1,150 40 2,400 30 17 3 17 3 34 3 3 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? K425 M67 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost
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