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EXERCISE 7 - 4 Second - Stage Allocation LO 7 - 4 Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity -

EXERCISE 7-4 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:
\table[[Activity Cost Pool,Activity Rates],[Supporting direct labor,$6 per direct labor-hour],[Machine processing,$4 per machine-hour],[Machine setups,$50 per setup],[Production orders,$90 per order],[Shipments,$14 per shipment],[Product sustaining,$840 per product]]
Activity data have been supplied for the following two products:
\table[[,Total Expected Activity],[,K425,M67],[Number of units produced per year,200,2,000],[Direct labor-hours,80,500],[Machine-hours,100,1,500],[Machine setups,1,4],[Production orders,1,4],[Shipments,1,10],[Product sustaining,1,1]]
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
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