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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: Activity
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 Production orders Shipments Product sustaining Activity Rates $ 10 per direct labor-hour $ 4 per machine-hour $ 35 per setup $ 170 per order $ 115 per shipment $ 850 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 1,050 50 2,800 40 5 2 5 2 10 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 Supporting direct labor K425 M67 Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost $ 0 $ 0
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