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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:

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 $11.00 per direct labor-hour
Machine processing $3.00 per machine-hour
Machine setups $45.00 per setup
Production orders $150.00 per order
Shipments $125.00 per shipment
Product sustaining $850.00 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 1,000 50
Machine-hours 3,400 40
Machine setups 9 1
Production orders 9 1
Shipments 18 1
Product sustaining 1 1

Required:

Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system.

image text in transcribed

Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost K425 M67 $ 0 $ 0

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