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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
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activitybased costing system contains the following six activity cost pools and activity rates:
tableActivity RateActivity cost Pool,$ per direct laborhourSupporting direct labor,$ per machinehourMachine processing,$ per setupMachine setups,$ per orderProduction orders,$ per shipmentShipments$ per productProduct sustaining,
Activity data have been supplied for the following two products:
tableTotal Expected ActivityKMNumber of units produced per year,Direct laborhours,Machinehours,Machine setups,Production orders,ShipmentsProduct sustaining,
Required:
How much total overhead cost would be assigned to K and M using the activitybased costing system?
table
tableActivity Cost PoolSupporting direct laborMachine processing,,Machine setups,,Production orders,,ShipmentsProduct sustaining,,Total overhead cost,$$
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