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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 3 per machine-hour Machine setups $10 per setup Production orders $170 per order Shipments $ 125 per shipment Product sustaining $ 850 per product $ $ Activity data have been supplied for the following two products: Total Expected Activity K425 MOZ Number of units produced per year 200 2,000 Direct labor.hours 1,175 60 Machine-hours 3,200 50 Machine setups Production orders Shipments 18 Product sustaining 3 9 3 3 3 Required: 18 Shipments Product sustaining 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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