Exercise Algo SecondStage Allocation LO
points
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activitybased costing system contains the following six activity cost pools and activity rates:
tableActivity Cost Pool,Activity RatesSupporting direct labor,$ per direct laborhourMachine processing,$ per machinehourMachine setups,$ per setupProduction orders,$ per orderShipments$ per shipmentProduct sustaining,$ per product
Activity data have been supplied for the following two products:
tableTotal Expected Activity,KMNumber of units produced per year,Direct laborhours,Machinehours,Machine setups,Production orders,ShipmentsProduct sustaining,
Required:
How much total overhead cost would be assigned to K and M using the activitybased costing system?
tableActivity Cost Pool,KMSupporting direct labor,,Machine processing,,Machine setups,,Production orders,,ShipmentsProduct sustaining,,Total overhead cost,,
