Klumper Corporation is a diversified manufacturer of industrial goods. The compa

Question

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:

  

  

  

Total Expected Activity

  

Determine the total overhead cost that would be assigned to each of the products listed above in 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:

Explanation / Answer

The correct answer is :

1. For K425 Overhead :

2. For M67 Overhead :

Activity Cost Pool K425 M67 Supporting direct labor 10,350 450 Machine processing 8,800 160 Machine setups 840 120 Production orders 3,360 480 Shipments 4,620 330 Product sustaining 2,625 2,625 Total overhead cost 30,595 4,165

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