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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 $40 per setup $ 170 per order $ 110 per shipment $ 875 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Required: Total Expected Activity K425 200 M67 2,000 1,100) 50 2,400 40 11 1 11 1 22 1 1 1 How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? ok Activity Cost Pool Supporting direct labor Machine processing ences Machine setups Production orders Shipments Product sustaining Total overhead cost K425 M67
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