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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: Activity
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 | $ 10 | per direct labor-hour |
Machine processing | $ 2 | per machine-hour |
Machine setups | $ 45 | per setup |
Production orders | $ 160 | per order |
Shipments | $ 130 | per shipment |
Product sustaining | $ 800 | per product |
Activity data have been supplied for the following two products:
Number of units produced per year | 200 | 2,000 |
---|---|---|
Direct labor-hours | 975 | 60 |
Machine-hours | 2,800 | 50 |
Machine setups | 19 | 1 |
Production orders | 19 | 1 |
Shipments | 38 | 1 |
Product sustaining | 1 | 1 |
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system
Activity Cost Pool | K425 | M67 | |
Supporting direct labor | |||
Machine Processing | |||
Machine Setups | |||
Production orders | |||
Shipments | |||
Product sustaining | |||
Total overhead costs |
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