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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 Bupporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rates $9 per direct labor-hour $2 per machine-hour $40 per setup $ 160 per order $ 120 per shipment $ 900 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Nachine-hours Machine setups Production orders Shipments Product sustaining Total Expected Activity 425 M67 200 2,000 900 30 2,800 20 19 2 19 38 2 2 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost M67
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