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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 Rates 9 per direct labor-hour 4 per machine-hour 40 per setup 160 per order 115 per shipment 825 per product Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity M67 K425 Number of units produced per year Direct labor-hours 200 2,000 1,050 3,200 40 Machine-hours 30 Machine setups Production orders 3 Shipments Product sustaining 10 3 3 m m m m un un m Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool Supporting direct labor Machine processing K425 M67 Machine setups Production orders Shipments Product sustaining Total overhead cost $ 0 $ 0
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