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$6per direct labor-hourMachine processing$4per machine-hourMachine setups$50per setupProduction orders$90per orderShipments$14per shipmentProduct sustaining$840per product
Activity data have been supplied for the following two products:
Total Expected Activity
K425M67Number of units produced per year2002,000Direct labor-hours80500Machine-hours1001,500Machine setups14Production orders14Shipments110Product sustaining11
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
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Essentials Of Accounting For Governmental And Not-for-Profit Organizations
Authors: Paul Copley
14th Edition
1260570177, 978-1260570175
