Question
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 $ 6 per direct labor-hour Machine processing $ 4 per machine-hour Machine setups $ 50 per setup Production orders $ 90 per order Shipments $ 14 per shipment Product sustaining $ 840 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 80 500 Machine-hours 100 1,500 Machine setups 1 4 Production orders 1 4 Shipments 1 10 Product sustaining 1 1
Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
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