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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 Activity Rates Supporting direct labor $ 9 per direct labor-hour Machine processing $ 4 per machine-hour Machine setups Production orders Shipments $ 40 per setup $ 170 per order $ 125 per shipment Product sustaining $ 825 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 1,075 40 2,800 30 11 2 11 2 22 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 M67 K425 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost
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