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I only need help of the wrong answers, PLEASE highlight them for me Klumper Corporation is a diversified manufacturer of industrial goods. The companys activity-based
I only need help of the wrong answers, PLEASE highlight them for me
Klumper Corporation is a diversified manufacturer of industrial goods. The companys activity-based costing system contains the following six activity cost pools and activity rates:
Activity Cost Pool | Activity Rates | ||
Supporting direct labor | $ | 6 | per direct labor-hour |
Machine processing | $ | 2 | per machine-hour |
Machine setups | $ | 45 | per setup |
Production orders | $ | 150 | per order |
Shipments | $ | 115 | per shipment |
Product sustaining | $ | 750 | per product |
Activity data have been supplied for the following two products:
Total Expected Activity | ||
K425 | M67 | |
Number of units produced per year | 200 | 2,000 |
Direct labor-hours | 1,175 | 40 |
Machine-hours | 2,600 | 30 |
Machine setups | 11 | 3 |
Production orders | 11 | 3 |
Shipments | 22 | 3 |
Product sustaining | 3 | 3 |
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
K425 M67 $ 7,050 $ 240 Activity Cost Pool Supporting direct labor Machine processing Machine setups 5,200 60 4 x 15 X Production orders 14 X 50 X 5 X 38 X Shipments Product sustaining 250 X 250 X Total overhead cost $ 12,523 $ 653 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deductedStep by Step Solution
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