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Exercise 7 - 4 ( Algo ) Second - Stage Allocation [ LO 7 - 4 ] Klumper Corporation is a diversified manufacturer of industrial

Exercise 7-4(Algo) Second-Stage Allocation [LO7-4]
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 data have been supplied for the following two products:
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing
system?Exercise 7-4(Algo) Second-Stage Allocation [LO7-4]
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 $ 10 per direct labor-hour
Machine processing $ 2 per machine-hour
Machine setups $ 40 per setup
Production orders $ 170 per order
Shipments $ 125 per shipment
Product sustaining $ 875 per product
Activity data have been supplied for the following two products:
Total Expected Activity
K425 M67
Number of units produced per year 2002,000
Direct labor-hours 92540
Machine-hours 3,20030
Machine setups 133
Production orders 133
Shipments 263
Product sustaining 33
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
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