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Exercise 7-4 Second-Stage Allocation (L07-4) Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost

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Exercise 7-4 Second-Stage Allocation (L07-4) 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 Activity Rates Supporting direct labor $ 8 per direct labor-hour Machine processing $ 5 per machine-hour Machine setups $40 per setup Production orders $ 150 per order Shipments 5 118 per shipment Product sustaining $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 Total Expected Activity K425 M6% 200 2,000 1,125 40 2,200 38 11 2 11 2. 22 2 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? K425 M67 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost $ 0$

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