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Klumper Corporation is a diversified manufacturer of industrial goods. The companys activity-based costing system contains...

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Accounting

Klumper Corporation is a diversified manufacturer of industrial goods. The companys activity-based costing system contains the following six activity cost pools and activity rates:
Activity Cost Pool Activity Rates
Supporting direct labor $ 6 per direct labor-hour
Machine processing $ 4 per machine-hour
Machine setups $ 50 per setup
Production orders $ 90 per order
Shipments $ 14 per shipment
Product sustaining $ 840 per product
Activity data have been supplied for the following two products:
Total Expected Activity
K425 M67
Number of units produced per year 2002,000
Direct labor-hours 80500
Machine-hours 1001,500
Machine setups 14
Production orders 14
Shipments 110
Product sustaining 11
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