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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 $ 7 per direct labor-hour Machine processing $ 3 per machine-hour Machine setups $ 35 per setup Production orders Shipments Product sustaining $ 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 setupa Production orders Shipments Product sustaining Total Expected Activity K425 H67 200 2,000 1,125 50 2,600 40 17 2 17 2 34 2 2 2
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