Question
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 | $ 6.00 | per direct labor-hour | |
| Machine processing | $ 4.00 | per machine-hour | |
| Machine setups | $ 50.00 | per setup | |
| Production orders | $ 90.00 | per order | |
| Shipments | $ 14.00 | per shipment | |
| Product sustaining | $ 840.00 | 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 | 80 | 500 |
| Machine-hours | 100 | 1,500 |
| Machine setups | 1 | 4 |
| Production orders | 1 | 4 |
| Shipments | 1 | 10 |
| Product sustaining | 1 | 1 |
|
| ||
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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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
