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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 Rates Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments S 11.00 per direct labor-hour S 2.00 per machine-hour S 40.00 per setup S 170.00 per order 115.00 per shipment 875.00 per product Product sustaining Activity data have been supplied for the following two products: Total Expected K425 M67 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining 200 1,100 2,800 2,000 50 40 2 Required Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system. Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost K425 M67
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