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STUCK T Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and
STUCK T 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 Production orders Shipments Product sustaining Activity Rates $8 per direct labor-hour $ 4 per machine-hour $45 per setup $ 160 per order $ 120 per shipment $ 750 per product Activity data have been supplied for the following two products: Total Expected Activity K425 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining 200 1,150 2,400 5 5 10 2 M67 2,000 822222N 40 30
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