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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

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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 pools and activity rates: Activity Cost Pool Activity Rates Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining $6 per direct labor-hour $4 per machine-hour $50 per setup $90 per order $14 per shipment $840 per product Activity data have been supplied for the following two products: Total Expected Activity K425 M67 200 80 100 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining 2,000 500 1,500 4 1 1 4 10 1 1 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system

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