DERCISE 7-4 Second-Stage Allocation L07-4 Corporation is a diversified manufacturer of industrial goods. The company's activity- Costing system contains the following six activity cost pools and activity rates: Klumper Corporation Activity Rates Activity Cost Pool Supporting direct labor .. Machine processing... Machine setups ....... Production orders ...... Shipments ......... Product sustaining $6 per direct labor-hour $4 per machine-hour $50 per setup $90 per order $14 per shipment $840 per product Activity data have been supplied for the following two products: Total Expected Activity K425 M67 200 2,000 500 1,500 Number of units produced per year .... Direct labor-hours Machine-hours. Machine setups Production orders Shipments ... Product sustaining