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 $7.00 per direct labor-hour Machine processing $2.00 per machine-hour Machine setups $45.00 per setup Production orders $160.00 per order Shipments $115.00 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 1,100 50 Machine-hours 2,400 40 Machine setups 19 2 Production orders 19 2 Shipments 38 2 Product sustaining 2 2 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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