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 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipment:s Product sustaining Activity Rates $7.00 per direct labor-hour $3.00 per machine-hour $50.00 per setup $160.00 per order $125.00 per shipment $875.00 per product Activity data have been supplied for the following two products: Total Expected Activit K425 M67 200 1,125 2,600 15 15 30 2,000 60 50 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining

Explanation / Answer

K425 M67 Supporting direct labor 7875 420 Machine processing 7800 150 Machine setups 750 50 Production orders 2400 160 Shipments 3750 125 Product sustaining 875 875 Total overhead cost 23450 1780

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