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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 $ 8.00 per direct labor-hour
Machine processing $ 2.00 per machine-hour
Machine setups $ 45.00 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 975 40
Machine-hours 2,800 30
Machine setups 7 3
Production orders 7 3
Shipments 14 3
Product sustaining 3 3

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Required: Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system. K425 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost M67 0

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