Question
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 Activity Rates $7 per direct labor-hour $ 4 per machine-hour $ 45 per setup Production orders Shipments Product sustaining $ 150 per order $ 120 per shipment $ 900 per product Activity data have been supplied for the following two products: Total Expected Activity Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining K425 M67 200 2,000 1,150 40 2,800 30 7 1 7 1 14 1 1 1 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 M67 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost $ 0 $ 0
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