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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 $7 per direct labor-hour $2 per machine-hour $35 per setup $160 per order $125 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 setupa Production orders Shipments Product sustaining Total Expected Activity K425 M67 200 2,000 1,000 50 2,800 40 11 1 11 1 22 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 Production orders Shipments Product sustaining Total overhead cost
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