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FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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n 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 processing Machine setups Production orders Shipments Product sustaining Activity Rate $9 per direct labor-hour $3 per machine-hour $ 45 per setup $ 150 per order $ 130 per shipment $775 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 Activity Cost Pool Supporting direct labor Machine processing Machine setups Total Expected Activity. K425 M67 2,000 K425 200 1,150 3,400 9 9 M67 18 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 40 30 2
Transcribed Image Text:n 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 processing Machine setups Production orders Shipments Product sustaining Activity Rate $9 per direct labor-hour $3 per machine-hour $ 45 per setup $ 150 per order $ 130 per shipment $775 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 Activity Cost Pool Supporting direct labor Machine processing Machine setups Total Expected Activity. K425 M67 2,000 K425 200 1,150 3,400 9 9 M67 18 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 40 30 2
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