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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:
| 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 | $11.00 | per direct labor-hour | |
| Machine processing | $4.00 | per machine-hour | |
| Machine setups | $40.00 | per setup | |
| Production orders | $150.00 | per order | |
| Shipments | $115.00 | per shipment | |
| Product sustaining | $800.00 | 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 | 1,025 | 30 | |
| Machine-hours | 2,200 | 20 | |
| Machine setups | 7 | 1 | |
| Production orders | 7 | 1 | |
| Shipments | 14 | 1 | |
| Product sustaining | 1 | 1 | |
| Required: |
| Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system. |
| Activity Cost Pool | K425 | M67 |
| Supporting Direct Labor | ||
| Machine Processing | ||
| Machine Setups | ||
| Production Orders | ||
| Shipments | ||
| Product Sustaining | ||
| Total Overhead Cost |
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