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Exercise 7-4 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
Exercise 7-4 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 Activity Rates Supporting direct labor $ 8 per direct labor-hour Machine processing $ 3 per machine-hour Machine setups Production orders Shipments Product sustaining $ 45 per setup $150 per order $ 130 per shipment $ 850 per product Activity data have been supplied for the following two products: Total Expected Activity Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining K425 M67 200 1,175 2,600 26 CREEK 2,000 40 30 13 2 13 2 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 M67 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost $
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