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Klumper Corporation is a diversified manufacturer of industrial goods. The companys 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 PoolActivity Rates
Supporting direct labor$10per direct labor-hour
Machine processing$4per machine-hour
Machine setups$50per setup
Production orders$150per order
Shipments$115per shipment
Product sustaining$775per product

Activity data have been supplied for the following two products:

Total Expected Activity

K425M67
Number of units produced per year2002,000
Direct labor-hours1,10050
Machine-hours2,60040
Machine setups171
Production orders171
Shipments341
Product sustaining11


Required:

How much total overhead cost would be assigned to K425 and M67using the activity-based costing system?

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