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 Rates $8 per direct labor-hour $ 3 per machine-hour $50 per setup Production orders $ 160 per order Shipments $ 120 per shipment. Product sustaining $ 800 per product Activity data have been supplied for the following two products: Activity Cost Pool Supporting direct labor Machine processing Machine setups 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 $ K425 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 0 $ Total Expected Activity K425 M67 2,000 M67 200 950 2,600 7 7 14 2 0 40 30 2 2 2 2

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Chapter1: Financial Statements And Business Decisions
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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 Rates
$8 per direct labor-hour
$ 3 per machine-hour
$50 per setup
Production orders
$ 160 per order
Shipments
$ 120 per shipment.
Product sustaining
$ 800 per product
Activity data have been supplied for the following two products:
Activity Cost Pool
Supporting direct labor
Machine processing
Machine setups
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
$
K425
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
0 $
Total Expected Activity
K425
M67
2,000
M67
200
950
2,600
7
7
14
2
0
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 Rates $8 per direct labor-hour $ 3 per machine-hour $50 per setup Production orders $ 160 per order Shipments $ 120 per shipment. Product sustaining $ 800 per product Activity data have been supplied for the following two products: Activity Cost Pool Supporting direct labor Machine processing Machine setups 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 $ K425 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 0 $ Total Expected Activity K425 M67 2,000 M67 200 950 2,600 7 7 14 2 0 40 30 2 2 2 2
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