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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:
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 $6 per direct labor-hour $3 per machine-hour $50 per setup $ 160 per order $115 per shipment $ 850 per product Activity data have been supplied for the following two products: Number of units produced per year i Direct labor-hours Machine-hours Machine setups Production orders Shipments Total Expected Activity K425 M67 200 2,000 1,000 40 2,800 30 7 2 7 2 14 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 Supporting direct labor Machine processing Machine setups Production orders Shinments K425 M67 4
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