Question
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 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rates $8 per direct labor-hour $2 per machine-hour $40 per setup $ 160 per order $115 per shipment $ 875 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 ces Production orders Shipments Product sustaining Total Expected Activity K425 M67 200 2,000 1,150 40 3,400 30 5 3 5 3 10 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool Supporting direct labor K425 M67 Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost $ 0 $ 0
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