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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 $ 10 per direct labor-hour $ 4 per machine-hour $ 45 per setup $ 150 per order $ 115 per shipment $ 775 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 1,100 60 2,400 50 15 3 15 3 30 3 3 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? X Answer is complete but not entirely correct. K425 M67 Activity Cost Pool Supporting direct labor $ 600 $ 11,000 X Machine processing 200 9,600 X Machine setups 135 X 675 X duction orders 450 X 2,250 X 345 3,450 Shipments Product sustaining 2,325 2,325 29,300 Total overhead cost $ 4,055 $
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