Question
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 PoolActivity RatesSupporting direct labor$7per direct labor-hourMachine processing$3per machine-hourMachine setups$40per setupProduction orders$170per orderShipments$115per shipmentProduct sustaining$800per product
Activity data have been supplied for the following two products:
Total Expected Activity
K425M67Number of units produced per year2002,000Direct labor-hours1,20060Machine-hours3,20050Machine setups173Production orders173Shipments343Product sustaining33
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
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Fundamental Accounting Principles Volume I
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
16th Canadian edition
978-1260305821
