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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 Rates Activity Cost Pool Supporting direct labor $9 per direct labor-hour $4 per machine-hour $45 per setup Machine processing Machine setups Production orders Shipments $160 per order $110 per shipment Product sustaining $750 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 Production orders Shipments Product sustaining Total overhead cost $ K425 0 $ Total Expected Activity K425 M67 2,000 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? M67 200 925 3,600 7 7 14 2 0 40 30 2 2 2 2
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