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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: C Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments $ 125 per shipment Product sustaining $825 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 $7 per direct labor-hour $2 per machine-hour $40 per setup $160 per order Total Expected Activity K425 M67 2,000 200 1,125 2,600 7 7 14 1 40 30 A 1 1 1 1

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: C Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments $ 125 per shipment Product sustaining $825 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 $7 per direct labor-hour $2 per machine-hour $40 per setup $160 per order Total Expected Activity K425 M67 2,000 200 1,125 2,600 7 7 14 1 40 30 A 1 1 1 1

FINANCIAL ACCOUNTING
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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Subject  :- Account 

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 $ 125 per shipment $825 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 Rates $7 per direct labor-hour $2 per machine-hour $40 per setup $160 per order 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 40 30 1 200 1,125 2,600 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 7 14 1 M67 1 1 1
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 Shipments $ 125 per shipment $825 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 Rates $7 per direct labor-hour $2 per machine-hour $40 per setup $160 per order 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 40 30 1 200 1,125 2,600 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 7 14 1 M67 1 1 1
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