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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 $ 9 per direct labor-hour

Machine processing $ 2 per machine-hour

Machine setups $ 45 per setup

Production orders $ 170 per order

Shipments $ 120 per shipment

Product sustaining $ 825 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 1,150 60

Machine-hours 3,000 50

Machine setups 5 2

Production orders 5 2

Shipments 10 2

Product sustaining 2 2

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 $0 $0

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