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USE THE FOLLOWING INFORMATION FOR QUESTIONS 17 AND18 K & C is a diversified manufacturer of industrial goods. The companys activity-based costing system contains the

USE THE FOLLOWING INFORMATION FOR QUESTIONS 17 AND18

K & C is a diversified manufacturer of industrial goods. The companys activity-based costing system contains the following three 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

$ 50

per setup

Activity data have been supplied for the following two products:

Total Expected Activity

K25

M67

Number of units produced per year

200

2,000

Direct labor-hours

925

60

Machine-hours

2,400

50

Machine setups

15

2

17. How much total overhead cost would be assigned to K25 using the activity-based costing system?

18. How much total overhead cost would be assigned to M67 using the activity-based costing system?

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