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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 $40 per setup $ 160 per order $ 110 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 200 M67 2,000 1,025 50 3,000 40 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?
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