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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
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activitybased 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 Rate
$ per direct laborhour
$ per machinehour
$ per setup
$ per order
$ per shipment
$ per product
Activity data have been supplied for the following two products:
Number of units produced per year
Direct laborhours
Machinehours
Machine setups
Production orders
Shipments
Product sustaining
Required:
How much total overhead cost would be assigned to K and M using the activitybased costing system?
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