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Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains th 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 th following six activity cost pools and activity rates: Activity Cost Pool Activity Rates Supporting direct labor $ 7 per direct labor-hour Machine processing $ 5 per machine-hour Machine setups $ 50 per setup Production orders $ 160 per order Shipments $ 125 per shipment Product sustaining $ 750 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Total Expected Activity K425 M67 200 2,000 1,100 50 2,600 40 7 3 7 14 3 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 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rates $ 7 per direct labor-hour $ 5 per machine-hour $ 50 per setup $ 160 per order $ 125 per shipment $ 750 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 1,100 50 Machine-hours 2,600 40 Machine setups 7 Production orders 7 Shipments 14 3 Product sustaining 3 3 3 3 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 $ 0 $ 0
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