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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 $10 per direct labor-hour $3 per machine-hour $ 45 per setup $ 170 per order $ 120 per shipment $775 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 Product sustaining Total Expected Activity K425 200 M67 2,000 1,150 40 3,600 30 17 1 17 1 34 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Coat Pool K425 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost M67
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