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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 SecondStage Allocation LO
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activitybased costing system contains the following six activity cost pools and activity rates:
tableActivity Cost Pool,Activity RatesSupporting direct labor,$ per direct laborhourMachine processing,$ per machinehourMachine setups,$ per setupProduction orders,$ per orderShipments$ per shipmentProduct sustaining,$ per product
Activity data have been supplied for the following two products:
tableTotal Expected ActivityKMNumber of units produced per year,Direct laborhours,Machinehours,Machine setups,Production orders,ShipmentsProduct sustaining,
Required:
How much total overhead cost would be assigned to K and M using the activitybased costing system?
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