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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 Rates Activity Cost Pool Supporting direct labor $ 7 per direct labor-hour Machine processing $ 4 per machine-hour Machine setups $ 40 per setup Production orders Shipments Product sustaining $ 160 per order $ 130 per shipment $ 800 per product Activity data have been supplied for the following two products: Total Expected Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity K425 M67 200 2,000 1,175 30 2,600 20 17 1 17 1 34 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 M67 K425 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost $ 0 < Prev 2 of 4 Next >
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