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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:
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 Cost Pool | Activity Rates | ||
Supporting direct labor | $7.00 | per direct labor-hour | |
Machine processing | $3.00 | per machine-hour | |
Machine setups | $45.00 | per setup | |
Production orders | $160.00 | per order | |
Shipments | $120.00 | per shipment | |
Product sustaining | $850.00 | per product |
Activity data have been supplied for the following two products: |
Total Expected Activity | ||
K425 | M67 | |
Number of units produced per year | 200 | 2,000 |
Direct labor-hours | 975 | 50 |
Machine-hours | 3,200 | 40 |
Machine setups | 5 | 3 |
Production orders | 5 | 3 |
Shipments | 10 | 3 |
Product sustaining | 3 | 3 |
Required: |
Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system. |
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