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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 cost
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 $ 4 per machine-hour $ 35 per setup $ 170 per order $ 125 per shipment $ 900 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 M67 200 2,000 950 60 3,000 50 13 3 13 26 3 3 3 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 0
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