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 $ 120 per shipment $850 per product Product sustaining 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 $ Activity Rates $6 per direct labor-hour $2 per machine-hour $35 per setup K425 0 $ Total Expected Activity K425 M67 2,000 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? M67 200 1,000 2,800 13 13 26 0 2 40 30 2 2 2 2
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 $ 120 per shipment $850 per product Product sustaining 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 $ Activity Rates $6 per direct labor-hour $2 per machine-hour $35 per setup K425 0 $ Total Expected Activity K425 M67 2,000 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? M67 200 1,000 2,800 13 13 26 0 2 40 30 2 2 2 2
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 3PA: Activity-based and department rate product costing and product cost distortions Black and Blue...
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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
$ 120 per shipment
$850 per product
Product sustaining
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.
$
Activity Rates
$6 per direct labor-hour
$2 per machine-hour
$35 per setup
K425
0 $
Total Expected Activity
K425
M67
2,000
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
M67
200
1,000
2,800
13
13
26
0
2
40
30
2
2
2
2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F887ed175-539f-4079-a422-06d93f0bd677%2F2804dbdd-5257-4431-aa87-504067084f43%2F02dn9mh_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
$ 120 per shipment
$850 per product
Product sustaining
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.
$
Activity Rates
$6 per direct labor-hour
$2 per machine-hour
$35 per setup
K425
0 $
Total Expected Activity
K425
M67
2,000
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
M67
200
1,000
2,800
13
13
26
0
2
40
30
2
2
2
2
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