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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 Pool Supporting direct labor Machine setups Machine processing Production orders Shipments Product sustaining Activity Rates $ 10 per direct labor-hour $5 per machine-hour $ 45 per setup $ 160 per order $ 115 per shipment $ 800 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Total Expected Activity K425 M67 200 2,000 1,200 40 3,200 30 9 3 9 18 3 Product sustaining Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool Supporting direct labor Machine processing K425 M67 Machine setups Production orders Shipments Product sustaining Total overhead cost $ 05 B
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