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 Rate Supporting direct labor Machine processing Machine setups Production orders Shipments $8 per direct labor-hour $3 per machine-hour $40 per setup $150 per order $ 130 per shipment Product sustaining $ 875 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 Production orders Shipments Product sustaining Total overhead cost $ 10 $ Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? K425 1,600 Total Expected Activity K425 M67 2,000 1,600 $ 200 950 3,000 17 17 34 1 M67 40 30 0 1 1 1

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.