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Exercise 7-4 (Static) 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 (Static) 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 Number of units produced per year Direct labor-hours Activity data have been supplied for the following two products: Machine-hours Activity Rate $6 per direct labor-hour $ 4 per machine-hour Machine setups Production orders Shipments Product sustaining $ 50 per setup $ 90 per order $ 14 per shipment $ 840 per product Total Expected Activity K425 M67 2,000 500 1,500 200 80 100 1 1 1 1 4 4 10 1 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
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