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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:
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 $8 per direct labor-hour $ 3 per machine-hour $ 35 per setup $ 170 per order $ 115 per shipment $ 850 per product Activity data have been supplied for the following two products: Total Expected Activit K425 M67 200 975 2,400 13 13 26 2,000 50 40 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Required: How much total overhead cost would be assigned to K425 and M67 using 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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