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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 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rate $8 per direct labor-hour $3 per machine-hour $40 per setup $150 per order $ 130 per shipment $ 875 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 Total Expected Activity K425 M67 200 2,000 950 40 3,000 30 17 1 17 1 34 1 Product sustaining Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 M67 Supporting direct labor $ 1,600 Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost $ 1,600 $ 0
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