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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
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 Cost Pool Supporting direct labor Machine processing. Machine setups Production orders Shipments Product sustaining Activity Rates $6 per direct labor-hour $2 per machine-hour $35 per setup $160 per order $ 110 per shipment $ 900 per product Activity data have been supplied for the following two products: Total Expected Activity n Direct labor-hours Number of units produced per year Machine-hours Machine setups Production orders ences Shipments Product sustaining K425 200 1,125 M67 2,000 50 3,200 40 19 1 19 1 38 1 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool Supporting direct labor Machine processing K425 M67 Machine setups Production orders Shipments Product sustaining i Total overhead cost S $
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