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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

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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 Cost Pool Activity Rates Supporting direct labor $6 per direct labor hour Machine processing 5.4 per machine hour Machine setups $50 per setup Production orders 500 per order Shipent 5 14 per shipment Product sustaining $ 340 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 7 200 2,000 30 500 100 1.500 1 4 1 4 1 10 1 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? K425 M67 $ 480 100 400 Activity Cost Pool Supporting direct labore Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost 5 50 90 141 8:40 1845 1.874

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