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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 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rates $10 per direct labor-hour $ 2 per machine-hour $ 45 per setup $ 170 per order $ 120 per shipment $ 775 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Total Expected Activity K425 M67 200 2,000 1,050 60 2,400 50 21 3 21 3 42 3 3 3 PNN NPP Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? K425 M67 $ 10,500 4,800 945 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost 3,570 5,040 2,400 $ 27,255 $ 0
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