Question
Klumper Corporation is a diversified manufacturer of industrial goods. The companys 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 companys activity-based costing system contains the following six activity cost pools and activity rates:
Activity Cost Pool Activity Rates
Supporting direct labor $ 7 per direct labor-hour
Machine processing $ 3 per machine-hour
Machine setups $ 40 per setup
Production orders $ 170 per order
Shipments $ 115 per shipment
Product sustaining $ 800 per product
Activity data have been supplied for the following two products:
Total Expected Activity K425 M67
Number of units produced per year 200 2,000
Direct labor-hours 1,200 60
Machine-hours 3,200 50
Machine setups 17 3
Production orders 17 3
Shipments 34 3
Product sustaining 3 3 Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
Klumper Corporation is a diversified manufacturer of industrial goods. The companys activity-based costing system contains the following six activity cost pools and activity rates:
| Activity Cost Pool | Activity Rates | ||
| Supporting direct labor | $ | 7 | per direct labor-hour |
| Machine processing | $ | 3 | per machine-hour |
| Machine setups | $ | 40 | per setup |
| Production orders | $ | 170 | per order |
| Shipments | $ | 115 | per shipment |
| Product sustaining | $ | 800 | per product |
Activity data have been supplied for the following two products:
| Total Expected Activity | ||
| K425 | M67 | |
| Number of units produced per year | 200 | 2,000 |
| Direct labor-hours | 1,200 | 60 |
| Machine-hours | 3,200 | 50 |
| Machine setups | 17 | 3 |
| Production orders | 17 | 3 |
| Shipments | 34 | 3 |
| Product sustaining | 3 | 3 |
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
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Knowledge Audit Complete Self Assessment Guide Practical Tools For Self Assesment
Authors: Gerardus Blokdyk
1st Edition
0655199837, 978-0655199830
