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:

Required:

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 Production orders Shipments Product sustaining Activity Rates $ 7 per direct labor-hour $ 2 per machine-hour $ 50 per setup $ 160 per order $ 125 per shipment $ 850 per product Activity data have been supplied for the following two products: Total Expected Activity K425 M67 2,000 1,075 3,600 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining 13 13 26 2 K425 M 67 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost