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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 $ 10 per direct labor-hour

Machine processing $ 5 per machine-hour

Machine setups $ 45 per setup

Production orders $ 160 per order

Shipments $ 120 per shipment

Product sustaining $ 775 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 925 40

Machine-hours 2,600 30

Machine setups 9 2

Production orders 9 2

Shipments 18 2

Product sustaining 2 2

Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?

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