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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 | activity rates |
supporting direct labor | $6 per direct labor hour |
machine processing | $4 per machine hour |
machine setups | $50 per setup |
production orders | $90 per order |
shipments | $14 per shipment |
product sustaining | $840 per product |
activity data have been supplied for the following two products
k425 | m67 | |
number of units produced per year | 200 | 2000 |
direct labor-hours | 80 | 500 |
machine-hours | 100 | 1500 |
machine setups | 1 | 4 |
production orders | 1 | 4 |
shipments | 1 | 10 |
product sustaining | 1 | 1 |
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
activity cost pool | K425 | M67 |
supporting direct labor | 480 | 3000 |
machine processing | 400 | 6000 |
machine setups | 50 | 200 |
production orders | 90 | 360 |
shipments | 14 | 140 |
product sustaining | ||
total overhead cost |
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