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
$
10
per direct labor-hour
Machine processing
$
2
per machine-hour
Machine setups
$
45
per setup
Production orders
$
150
per order
Shipments
$
125
per shipment
Product sustaining
$
900
per product
Activity data have been supplied for the following two products:
Total Expected Activity
K425
M67
Number of units produced per year
200
2,000
Direct labor-hours
1,125
40
Machine-hours
3,200
30
Machine setups
7
2
Production orders
7
2
Shipments
14
2
Product sustaining
2
2
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
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 $ 10 per direct labor-hour $ 2 per machine-hour $ 45 per setup $ 150 per order $ 125 per shipment $ 900 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Total Expected Activity K425 M67 200 2,000 1,125 40 3, 200 30 7 2 7 2 14 2 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? K425 M67 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost $ 0 $ 0
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