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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 processing Machine setups Production orders Shipments Product sustaining Activity Rates $10 per direct labor-hour $ 4 per machine-hour $ 45 per setup $150 per order $ 130 per shipment $ 825 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 2,000 925 60 3,600 50 17 2 17 2 34 2 2 2 Product sustaining Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost M67
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