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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 Rates Activity Cost Pool Supporting direct labor $9 per direct labor-hour $4 per machine-hour Machine processing Machine setups $45 per setup Production orders $170 per order Shipments $115 per shipment Product sustaining $800 per product Activity data have been supplied for the following two products: Number of units produced per year 200 Direct labor-hours 950 Machine-hours 3,000 Machine setups 11 Production orders 11 Shipments 22 Product sustaining 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 M67 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost Total Expected Activity K425 M67 2,000 60 50 2 2 2
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