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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:
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 | $10.00 | per direct labor-hour | |
Machine processing | $5.00 | per machine-hour | |
Machine setups | $35.00 | per setup | |
Production orders | $170.00 | per order | |
Shipments | $110.00 | per shipment | |
Product sustaining | $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 | 200 | 2,000 | |
Direct labor-hours | 925 | 50 | |
Machine-hours | 2,400 | 40 | |
Machine setups | 11 | 2 | |
Production orders | 11 | 2 | |
Shipments | 22 | 2 | |
Product sustaining | 2 | 2 | |
Required: |
Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system.
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