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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 Activity Rates Supporting direct labor $ 11 per direct labor-hour Machine processing $ 3 per machine-hour Machine setups $ 35 per setup Production orders $ 150 per order Shipments $ 115 per shipment Product sustaining $ 850 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 900 Machine-hours 2,200 40 Machine setups 2 Production orders 9 2 Shipments 18 2 Product sustaining 2 2 50 9 Required: total overhead cost would be assigned to K425 and M67 using the activity based costing system? Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Total Expected Activity K425 M67 200 2,000 900 50 2,200 40 9 9 18 2 NNNNOOO Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? K425 M67 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining $ Total overhead cost 0 0 $
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