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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 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rates $7.00 per direct labor-hour $500 per machine-hour $45.00 per setup $160.00 per order 120.00 per shipment $775.00 per product Activity data have been supplied for the following two products Total Expected Activity K425 M67 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders 200 1,125 2,200 2,000 60 50 14 Product sustaining Required: Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost K425 M67

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