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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 Nachine setups Production orders Shipments Product sustaining Activity Rates $11 per direct labor-hour $5 per machine-hour $40 per setup $160 per order $110 per shipment $775 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 1,150 30 3,200 20 21 3 21 42 3 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
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