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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.
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