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EXERCISE 74 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

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EXERCISE 74 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 $6.00 per direct labor-hour Supporting direct labor Machine processing Machine setups Production orders^' Shipments. Product sustaining $4.00 per machine-hour $50.00 per setup $90.00 per order $14:00 per shipment $840.00 per product Activity data have been supplied for the following two products: Total Expected Activity K425 M67 200 80 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments 2,000 500 1,500 4 4 10 100 roduct sustaining Required Determine the total overhead cost that would be assigned toeachofthe products listed above in the activity-based costing system

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