Klumper Corporation is a diversified manufacturer of industrial goods. The company's ABC system has the following six activity cost pools and activity rates: Activity Cost Pool Labour related Machine related Machine setups Production orders Shipments General factory Activity Rates $ 18.00 per direct labour-hour 18.00 per machine-hour 50.00 per setup 120.00 per order 18.00 per shipment 38.00 per direct labour-hour Cost and activity data have been supplied for the following products: K425 M67 Direct materials cost per unit Direct labour cost per unit Number of units produced per year $126.00 $ 11.50 $212.00 $ 7.20 4,000 400 Total Expected Activity K425 M67 1,000 3,000 Direct labour-hours Machine-hours Machine setups Production orders Shipments 160 200 6 20
Klumper Corporation is a diversified manufacturer of industrial goods. The company's ABC system has the following six activity cost pools and activity rates: Activity Cost Pool Labour related Machine related Machine setups Production orders Shipments General factory Activity Rates $ 18.00 per direct labour-hour 18.00 per machine-hour 50.00 per setup 120.00 per order 18.00 per shipment 38.00 per direct labour-hour Cost and activity data have been supplied for the following products: K425 M67 Direct materials cost per unit Direct labour cost per unit Number of units produced per year $126.00 $ 11.50 $212.00 $ 7.20 4,000 400 Total Expected Activity K425 M67 1,000 3,000 Direct labour-hours Machine-hours Machine setups Production orders Shipments 160 200 6 20
Chapter1: Financial Statements And Business Decisions
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