Klumper Corporation is a diversified manufacturer of industrial goods. The companys activity-based costing system contains...
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Accounting
Klumper Corporation is a diversified manufacturer of industrial goods. The companys activitybased costing system contains the following six activity cost pools and activity rates:
Activity Cost Pool Activity Rate
Supporting direct labor $ per direct laborhour
Machine processing $ per machinehour
Machine setups $ per setup
Production orders $ per order
Shipments $ per shipment
Product sustaining $ per product
Activity data have been supplied for the following two products:
Total Expected Activity
K M
Number of units produced per year
Direct laborhours
Machinehours
Machine setups
Production orders
Shipments
Product sustaining
Required:
How much total overhead cost would be assigned to K and M using the activitybased costing system?
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