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Klumper Corporation is a diversified manufacturer of industrial goods. The company's 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 company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Fool Activity Rates Supporting direct labor $ 6 per direct labor-hour Machine processing $ 4 per machine-hour Machine setups Production orders Shipments Product sustaining $50 per setup $ 90 per order $14 per shipment $ 840 per product Activity data have been supplied for the following two products Total Expected Activity Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining K425 M671 200 2,000 80 500 100 1,500 1 4 4 1 10 1 1 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool M67 K425 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost
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