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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: Motivity
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: Motivity Control Activity Rates Supporting direct labor $ 7 per direct labor-hour Machine processing $ 3 per machine-hour Machine setups $ 45 per setup Production orders $ 160 per order Shipments $130 per shipment Product sustaining $ 800 per product Activity data have been supplied for the following two products: Number of units produced per year birect labor-hours Machine-hours Machine setup Production orders Shipments Product sustaining Total Expected Activity K425 167 200 2000 1.050 80 2.600 30 13 1 13 1 26 1 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 M67 Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setup Production orders Shipments Product sustaining Total Expected Activity 1425 M67 200 2,000 1,050 40 2,600 30 13 1 13 1 26 1 1 1 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
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