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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: Activity
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 Activity Rates 9 per direct labor-hour 3 per machine - hour 40 per setup 170 per order $ 120 per shipment $ 825 per product Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity K425 M67 Number of units produced per year Direct labor-hours 200 2,000 1,125 2,400 50 Machine-hours 40 Machine setups Production orders Shipments Product sustaining 15 2. 15 2 30 2 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Requrea. How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool Supporting direct labor Machine processing Machine setups M67 K425 Production orders Shipments Product sustaining Total overhead cost 0 0 $
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