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Klumper Corporation is a diversified manufacturer of industrial goods. I he company's activity-based costing system contains the following six activity cost pools and activity
Klumper Corporation is a diversified manufacturer of industrial goods. I he company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Activity Rates Supporting direct labor $ 9 per direct labor-hour Machine processing $ 3 per machine-hour Machine setups Production orders Shipments Product sustaining $45 per setup $150 per order $ 115 per shipment $ 875 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Total Expected Activity X425 1967 2001 2,000 1,050 50 2,400 40 7 2 7 2 14 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool Supporting direct labor K425 M67 Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost $ 0 $
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