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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 $ 10 per direct labor-hour
Machine processing $ 2 per machine-hour
Machine setups $ 45 per setup
Production orders $ 150 per order
Shipments $ 125 per shipment
Product sustaining $ 900 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 1,125 40
Machine-hours 3,200 30
Machine setups 7 2
Production orders 7 2
Shipments 14 2
Product sustaining 2 2

Required:

How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?

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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 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 $ 150 per order $ 125 per shipment $ 900 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 1,125 40 3, 200 30 7 2 7 2 14 2 2 2 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 $ 0 $ 0

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