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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 $5 per machine-hour $50 per setup $ 160 per order $115 per shipment $ 825 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 Total Expected Activity K425 M67 200 2,000 950 60 3,400 50 21
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