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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 Activity Rates $8 per direct labor-hour $3 per machine-hour $ 40 per setup $ 160 per order $ 120 per shipment $ 875 per product Activity data have been supplied for the following two products: Shipments Product sustaining Number of units produced per year Direct labor-hours i 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 K425 Total Expected Activity X425 M67 2,000 M67 200 1,050 3,000 13 13. 26 40 30 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 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 Activity Rates $8 per direct labor-hour $3 per machine-hour $ 40 per setup $ 160 per order $ 120 per shipment $ 875 per product Activity data have been supplied for the following two products: Shipments Product sustaining Number of units produced per year Direct labor-hours i 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 K425 Total Expected Activity X425 M67 2,000 M67 200 1,050 3,000 13 13. 26 40 30 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 2 2

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 $ 160 per order Production orders Shipments $ 120 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 Activity Rates. $8 per direct labor-hour $ 3 per machine-hour. $ 40 per setup Production orders Shipments Product sustaining Total overhead cost K425 Total Expected Activity K425 M67 2,000 M67 200 1,050 3,000 13 13 26 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 40 30 2 2 2 2
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 $ 160 per order Production orders Shipments $ 120 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 Activity Rates. $8 per direct labor-hour $ 3 per machine-hour. $ 40 per setup Production orders Shipments Product sustaining Total overhead cost K425 Total Expected Activity K425 M67 2,000 M67 200 1,050 3,000 13 13 26 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 40 30 2 2 2 2
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