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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
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 $7 per direct labor-hour $3 per machine-hour $ 45 per setup $150 per order $ 120 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 M67 200 2,000 1,075 60 3,000 50 21 1 21 1 42 1 1 1 How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
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