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 $7 Activity Rates per direct labor-hour $ 4 per machine-hour $40 per setup $ 160 per order $125 per shipment $ 800 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production ordera Shipments Product sustaining Required: Total Expected Activity X425 200 M67 2,000 1,000 50- 2,200 40 9 1 9 1 18 1 How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 Supporting direct labor Machine processing Machine setups Production ordere M67 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rates $7 per direct labor-hour $ 4 per machine-hour $40 per setup $ 160 per order $125 per shipment $ 800 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Required: Total Expected Activity K425 200 M67 2,000 1,000 50 2,200 40 9 1 9 1 18 1 1 1 How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool M67 K425 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost