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 K425 Total Expected Activity K425 M67 2,000 M67 200 925 2,600 13 13 26 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 3 40 30 3 3 3

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Production orders
Shipments
Product sustaining
Total overhead cost
K425
Total Expected Activity
K425
M67
2,000
M67
200
925
2,600
13
13
26
3
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
wwww38
40
30
Transcribed Image Text: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 Production orders Shipments Product sustaining Total overhead cost K425 Total Expected Activity K425 M67 2,000 M67 200 925 2,600 13 13 26 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? wwww38 40 30
Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4]
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
Number of units produced per year
Direct labor-hours
Machine-hours
Activity Rates.
$10 per direct labor-hour
$3 per machine-hour
$ 125 per shipment
$ 775 per product
Activity data have been supplied for the following two products:
Machine setups
Production orders
Shipments
Product sustaining
$ 35 per setup
$160 per order.
Total Expected Activity
K425
M67
200
925
2,600
13
13.
26
3
,000
40
30
3
3
3
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
Transcribed Image Text:Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4] 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 Number of units produced per year Direct labor-hours Machine-hours Activity Rates. $10 per direct labor-hour $3 per machine-hour $ 125 per shipment $ 775 per product Activity data have been supplied for the following two products: Machine setups Production orders Shipments Product sustaining $ 35 per setup $160 per order. Total Expected Activity K425 M67 200 925 2,600 13 13. 26 3 ,000 40 30 3 3 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
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