Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains thefollowing six activity cost pools and activity rates:Activity Cost PoolSupporting direct laborMachine processingMachine setups$ 35 per setup$ 150 per order$ 130 per shipment$850 per productActivity data have been supplied for the following two products:Production ordersShipmentsProduct sustainingNumber of units produced per yearDirect labor-hoursMachine-hoursMachine setupsProduction ordersShipmentsProduct sustainingActivity Rate$10 per direct labor-hour$5 per machine-hourActivity Cost PoolSupporting direct laborMachine processingMachine setupsProduction ordersShipmentsProduct sustainingTotal overhead costK425Total Expected ActivityK425M672,0002001,2003,20055102Required:How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?M6740302222

The activity rate is calculated as the estimated activity cost divided by the estimated usage. The…

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 data have been supplied for the following two products: Number of units produced per year Direct labor-hours Activity Rate $10 per direct labor-hour $5 per machine-hour $35 per setup $150 per order $ 130 per shipment $850 per product Machine-hours Machine setups Production orders Shipments Product sustaining Total Expected Activity K425 M67 2,000 200 1,200 3,200 5 5 10 2 40 30 2 2 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?

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 data have been supplied for the following two products: Number of units produced per year Direct labor-hours Activity Rate $10 per direct labor-hour $5 per machine-hour $35 per setup $150 per order $ 130 per shipment $850 per product Machine-hours Machine setups Production orders Shipments Product sustaining Total Expected Activity K425 M67 2,000 200 1,200 3,200 5 5 10 2 40 30 2 2 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?

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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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 data have been supplied for the following two products: Total Expected Activity Activity Rates $ 7 per direct labor-hour $ 4 per machine-hour $50 per setup $ 170 per order $ 130 per shipment $ 800 per product Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining K425 200 1,075 2,200 11 11 22 2 M67 2,000 40 30 2 2 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
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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 Supporting direct labor. Machine processing Machine setups Production orders $ 160 per order Shipments $125 per shipment Product sustaining $850 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 Rates $ 11 per direct labor-hour $2 per machine-hour $50 per setup 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 1,150 3,200 15 15 30 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 40 30 3 3 3 3
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