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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 | $ | 7.00 | per direct labor-hour |
Machine processing | $ | 3.00 | per machine-hour |
Machine setups | $ | 45.00 | per setup |
Production orders | $ | 160.00 | per order |
Shipments | $ | 130.00 | per shipment |
Product sustaining | 825.00 | 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 | 925 | 50 |
Machine-hours | 2,400 | 40 |
Machine setups | 21 | 3 |
Production orders | 21 | 3 |
Shipments | 42 | 3 |
Product sustaining | 3 | 3 |
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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