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Exercise 7-4(Algo) Second-Stage Allocation [LO7-4] 2 points (1) Klumper Corporation is...

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Accounting

Exercise 7-4(Algo) Second-Stage Allocation [LO7-4]
2 points
(1)
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:
\table[[Activity Cost Pool,Activity Rates],[Supporting direct labor,$7 per direct labor-hour],[Machine processing,$4 per machine-hour],[Machine setups,$35 per setup],[Production orders,$150 per order],[Shipments,$125 per shipment],[Product sustaining,$800 per product]]
Activity data have been supplied for the following two products:
\table[[,Total Expected Activity,],[,K425,M67],[Number of units produced per year,200,2,000],[Direct labor-hours,1,200,60],[Machine-hours,3,200,50],[Machine setups,9,1],[Production orders,9,1],[Shipments,18,1],[Product sustaining,1,1]]
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
\table[[Activity Cost Pool,K425,M67],[Supporting direct labor,,],[Machine processing,,],[Machine setups,,],[Production orders,,],[Shipments,,],[Product sustaining,,],[Total overhead cost,,]]
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