Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. klumper corporation is a diversified manufacturer

Klumper Corporation is a diversified manufacturer of industrial goods. The company’s activity based costing system contains the...

Free

60.1K

Verified Solution

Question

Accounting

Klumper Corporation is a diversified manufacturer of industrialgoods. The company’s activity based
costing system contains the following six activity cost pools andactivity rates:

  

  Activity CostPool              ActivityRates
  Supporting directlabor$10.00per direct labor-hour
  Machineprocessing$5.00per machine-hour
  Machine setups$35.00per setup
  Productionorders$170.00per order
  Shipments$110.00per shipment
  Productsustaining$775.00per product

  

Activity data have been suppliedfor the following two products:

  

Total Expected Activity

    K425    M67
  Numberof units produced per year   200     2,000   
  Directlabor-hours925  50  
  Machine-hours2,400   40  
  Machine setups11   2   
  Production orders11  2  
  Shipments22  2   
  Productsustaining2  2  

  

Required:

Determine the total overhead cost that would be assigned to eachof the products listed above in the activity-based costingsystem.

ActivityCost PoolK425M67
Supporting direct labor
Machineprocessing
Machinesetups
Production orders
Shipments
Productsustaining
Total overhead cost$0$0

Answer & Explanation Solved by verified expert
4.0 Ratings (532 Votes)

Answer:

Activity Cost Pool

K425

M68

  Supporting direct labor

9250

500

  Machine processing

12000

200

  Machine setups

385

70

  Production orders

1870

340

  Shipments

2420

220

  Product sustaining

1550

1550

  Total overhead cost

27475

2880

Working notes for the above answer is as under

K425

Activity Cost Pool

Activity Rate

           Activity

ABC Cost

K425

A

B

C=A*B

  Supporting direct labor

10

per direct labor-hour

925

9250

  Machine processing

5

per machine-hour

2400

12000

  Machine setups

35

per setup

11

385

  Production orders

170

per order

11

1870

  Shipments

110

per shipment

22

2420

  Product sustaining

775

per product

2

1550

  Total overhead cost

27475

M-67

Activity Rate

           Activity

ABC Cost

  M67

A

B

C=A*B

  Supporting direct labor

10

per direct labor-hour

50

500

  Machine processing

5

per machine-hour

40

200

  Machine setups

35

per setup

2

70

  Production orders

170

per order

2

340

  Shipments

110

per shipment

2

220

  Product sustaining

775

per product

2

1550

  Total overhead cost

2880

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Manufacturing overhead cost was applied to jobs, Rmb ?

Statistics
1.2K views

A dog food manufacturer is using a new process to make his dog food.  He believes the...

Biology
1.2K views

A group of students conducts research on enzyme activity and collects the data shown in...

Physics
1.2K views

13 A hypothetical magnetic field existing in a region is given by B B e...

Algebra
1.2K views

Graph the quadratic function f x 3x 24x 45 Give the a vertex b axis...

Accounting
1.2K views

Kitchen Supply, Inc. (KSI), manufactures three types of flatware: institutional, standard, and silver. It applies...

Accounting
1.2K views

The condensed financial statements of Sandhill Company for the years 2026 and 2027 are presented...

Accounting
1.2K views

How do I journalize this :Issued $500,000 of 10-year, 5% bonds at 104, with interest...

Accounting
1.2K views

Statement of Owner's Equity Financial information related to Lost Trail Company, a proprietorship, for the...

Accounting
1.2K views

Your parents are considering investing in Apple Inc. common stock. They ask you, as an...

Accounting
1.2K views

3-13 through 3-14 Part 2...

Finance
1.2K views

Accumulated depreciation balance present an expense account closed by the fiscal period ending to the...