Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains th following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Activity Rates $ 9 per direct labor-hour $ 3 per machine-hour $ 40 per setup $ 160 per order $ 125 per shipment $ 900 per product Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity M67 2, 000 50 40 1. 1 1. К425 200 1, 025 3, 200 13 13 26 1 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining 1 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 th following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Activity Rates $ 9 per direct labor-hour $ 3 per machine-hour $ 40 per setup $ 160 per order $ 125 per shipment $ 900 per product Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity M67 2, 000 50 40 1. 1 1. К425 200 1, 025 3, 200 13 13 26 1 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining 1 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?
Multiple Choice $9,907.97 $89,171.73 $5,173.02 $136.51
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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
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 $ 8 per direct labor-hour Machine processing $ 4 per machine - hour Machine setups $ 40 per setup Production orders $ 150 per order Shipments $ 120 per shipment Product sustaining $ 900 per product Activity data have been supplied for the following two products: Total Expected Activity K425 -M67 Number of units produced per year 200 2,000 Direct labor-hours 925 40 Machine - hours 2, 600 30 Machine setups 11 1 Production orders 11 1 Shipments 22 1 Product sustaining 1 1