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:
| 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 | $11.00 | per direct labor-hour | |
| Machine processing | $4.00 | per machine-hour | |
| Machine setups | $40.00 | per setup | |
| Production orders | $160.00 | per order | |
| Shipments | $125.00 | per shipment | |
| Product sustaining | $850.00 | 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 | 975 | 40 | |
| Machine-hours | 2,600 | 30 | |
| Machine setups | 9 | 1 | |
| Production orders | 9 | 1 | |
| Shipments | 18 | 1 | |
| Product sustaining | 1 | 1 | |
| Required: |
| Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system. |
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IT Auditing Using Controls To Protect Information Assets
Authors: Chris Davis, Mike Schiller, Kevin Wheeler
3rd Edition
1260453227, 978-1260453225
