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 Rates $9.00 per direct labor-hour S3.00 per machine-hour Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining 545.00 per setup $170.00 per order $110.00 per shipment $850.00 per product Activity data have been supplied for the following two products Total Expected Activity K425 M67 200 1,050 2,800 2,000 30 20 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Required Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost K425 M67

Explanation / Answer

Determine Total overhead cost under activity based costing :

K425 M67 Supporting direct labour 9450 270 Machine processing 8400 60 Machine setups 495 90 Production orders 1870 340 Shipments 2420 220 Product sustaining 1700 1700 Total overhead cost 24335 2680

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