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 Activity Rates $ 9 per direct labor-hour $ 2 per machine-hour $ 40 per setup $ 160 per order $ 120 per shipment $ 850 per product Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity К425 M67 Number of units produced per year Direct labor-hours 200 2,000 1,000 60 Machine-hours 2,400 50 Machine setups Production orders 2 2 Shipments Product sustaining 18 2 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 M67 Supporting direct labor Machine processing Machine setups Production orders 1,440 Shipments 2,160 Product sustaining 1,700 Total overhead cost $ 5,300 $

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 Activity Rates $ 9 per direct labor-hour $ 2 per machine-hour $ 40 per setup $ 160 per order $ 120 per shipment $ 850 per product Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity К425 M67 Number of units produced per year Direct labor-hours 200 2,000 1,000 60 Machine-hours 2,400 50 Machine setups Production orders 2 2 Shipments Product sustaining 18 2 2 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 M67 Supporting direct labor Machine processing Machine setups Production orders 1,440 Shipments 2,160 Product sustaining 1,700 Total overhead cost $ 5,300 $

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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