Chapter 7 - Q3

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 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rates $ 6 per direct labor-hour $ 4 per machine-hour $ 35 per setup $ 160 per order $ 120 per shipment $ 825 per product Activity data have been supplied for the following two products: Total Expected Activity K425 M67 200 2,000 1,000 2,800 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining 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