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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 Rate $9 per direct labor-hour $3 per machine-hour $45 per setup Production orders. $ 150 per order Shipments $ 130 per shipment Product sustaining $ 775 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 Product sustaining Activity Cost Pool Supporting direct labor Machine processing Machine setups Total Expected Activity K425 M67 2,000 40 30 K425 200 1,150 3,400 9 9 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? M67 18 2 N222288
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