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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 $ 11 per direct labor-hour $5 per machine-hour $45 per setup Production orders $ 160 per order Shipments $ 115 per shipment Product sustaining $825 per product Activity data have been supplied for the following two products: Activity Cost Pool Supporting direct labor Machine processing Machine setups Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders K425 Total Expected Activity K425 M67 2,000 M67 200 975 2,800 21 21 42 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 30 20 2 2 2 2
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