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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 $ 11 per direct labor-hour $3 per machine-hour $40 per setup $160 per order $ 120 per shipment. $ 800 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 2,000 925 40 2,200 30 5 3 5 3 10 3 3 3 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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