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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 $ 8 per direct labor-hour
Machine processing $ 3 per machine-hour
Machine setups $ 45 per setup
Production orders $ 160 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 925 40
Machine-hours 3,600 30
Machine setups 21 2
Production orders 21 2
Shipments 42 2
Product sustaining 2 2

Required:

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

image text in transcribed

\begin{tabular}{|l|l|l|} \hline Activity Cost Pool & \multicolumn{1}{|c|}{ K425 } & M67 \\ \hline Supporting direct labor & & \\ \hline Machine processing & & \\ \hline Machine setups & & \\ \hline Production orders & & \\ \hline Shipments & & \\ \hline Product sustaining & & \\ \hline Total overhead cost & & \\ \hline \end{tabular}

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