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 processin Machine setups Production orders Shipments Product sustaining Activity Rates $9.00 per direct labor-hour $3.00 per machine-hour $40.00 per setup $170.00 per order $110.00 per shipment $775.00 per product Activity data have been supplied for the following two products Total Expected Activity K425 M67 200 1,200 2,800 5 5 10 2,000 60 50 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining 3 Required Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system K425 M67 Activity Cost Pool Supporting direct labor$ Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost 540 150 120 510 330 2,325 3,975 10,800$ 8,400 200 850 1,100 2,325 23,675 $

Explanation / Answer

K425 M67 Supporting direct labor 10800 540 MAchine processing 8400 150 Machine setups 200 120 Production orders 850 510 Shipments 1100 330 Product sustaining 775 775 Total overhead cost 22125 2425

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