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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
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 Activity Rates Supporting direct labor $ 8 per direct labor-hour Machine processing $2 per machine-hour Machine setups 5 48 per setup Production orders $ 170 per order Shipments $ 120 per shipment Product sustaining $ 850 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 50 2,400 40 15 2 15 2 30 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
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