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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
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 S 10.00 per direct labor-hour S 4.00 per machine-hour S 35.00 per setup $ 150.00 per order $ 120,00 per shipment 800.00 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 K425 M67 200 2,000 975 40 3,400 30 17 2 17 2 2 34 2 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. K425 M67 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost
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