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K425 M67 Number of units produced per year. 200 2,000 Direct labor-hours 1,100 30 Machine-hours 2,200 20 Machine setups 21 3 Production orders 21 3
K425 M67 Number of units produced per year. 200 2,000 Direct labor-hours 1,100 30 Machine-hours 2,200 20 Machine setups 21 3 Production orders 21 3 Shipments 42 3 Product sustaining 3 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 M67 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost 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 per direct labor-hour $ 5 per machine-hour $ 45 per setup $160 per order $115 per shipment $750 per product Activity data have been supplied for the following two products
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