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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 $2 per machine-hour $ 50 per setup $ 160 per order $ 130 per shipment $ 875 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 K425 M67 200 2,000 1,175 40 3,200 30 17 17 34 2 222222 Product sustaining 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 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Required: Total Expected Activity K425 200 1,175 3,200 17 17 34 2 M67 2,000 40 30 2222 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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