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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 Activity Rates 9 per direct labor-hour 4 per machine - hour $ $ 35 per setup 170 per order $ 115 per shipment $850 per product Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity M67 2,000 40 K425 Number of units produced per year Direct labor - hours 200 1,175 2, 600 Machine-hours Machine setups Production orders Shipments Product sustaining 30 15 1 15 30 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 Machine processing Machine setups Production orders Shipments Product sustaining $ Total overhead cost
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