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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: Activity

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 $ 8 per direct labor-hour
Machine processing $ 5 per machine-hour
Machine setups $ 40 per setup
Production orders $ 160 per order
Shipments $ 120 per shipment
Product sustaining $ 800 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 950 40
Machine-hours 2,600 30
Machine setups 19 1
Production orders 19 1
Shipments 38 1
Product sustaining 1 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
Supporting direct labor
Machine processing
Machine setups
Production orders
Shipments
Product sustaining
Total overhead cost

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