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

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

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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