Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains...
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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 Activity Rates Supporting direct labor $ 9 per direct labor-hour Machine processing $ 3 per machine-hour Machine setups $ 50 per setup Production orders $ 160 per order Shipments $ 120 per shipment Product sustaining $ 825 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Total Expected Activity K425 M67 200 2,000 950 50 3,000 40 15 2 15 2 30 2 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Answer is complete but not entirely correct. Activity Cost Pool K425 M67 Supporting direct labor $ 950 $ 8,550 Machine processing 3,000 9,000 Machine setups 15 750 Production orders 15 2,400 Shipments 30 X 3,600 Product sustaining 2 1,650 Total overhead cost $ 4,012 $ 25,950
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