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ID: 2552195 • Letter: #

Question

%2F%2Fconnect.mhe mheducation. com/ flow/connect.html?is Reg-true&returnUrls; https%3A Q. Mail - Alkhulaif, Hass ] QConnect e Martinez Company. Review Test Sdonis ssan Saved ework 7 (Chapter 2 Klumper Corporation following six activity cost pools and activity rates: is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the Activity Activity Cost Supporting direct labor Machine processing $ 9 per direct labor-hour s 3 per machine-hour 40 per setup s 170 per order s 125 per shipment s 825 per product Shipments Product sustaining okActivity data have been supplied for the following two products Total Expected 200 ,0e6 Number of units preduced per year Direct laber hours 3, 200 Product.ion Shipments Product sustaining Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Supporting direct labor

Explanation / Answer

Activity cost pool K425 M67 Supporting Labour (@ 9 per DLH) 9450 450 machine Processing (@3 per MH) 9600 120 machine Setups (@ 40 per setup) 760 80 Prod. Orders (@170 per order) 3230 340 Shipments (@125 per shipment) 4750 250 Product Sustaining (@825 per rpoduct) 1750 1750 Total Overheads 29540 2990