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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: 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 Pool Activity Rates Supporting direct labor $ 9 per direct labor-hour Machine processing $ 4 per machine-hour Machine setups $45 per setup Production orders $ 160 per order Shipments $ 120 per shipment Product sustaining $ 875 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 tabor-hours 1,025 40 Machine-hours 3,400 30 Machine setups 11 3 Production orders Shipments 22 3 Product sustaining 3 3 11 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? K425 M67 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost $ 0 $ 0
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