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 K425 M67 200 1,175 3,000 13 13 26 1 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? M67 2,000 40 30 1 1 1 1
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 K425 M67 200 1,175 3,000 13 13 26 1 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? M67 2,000 40 30 1 1 1 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Total Expected Activity
K425
M67
2,000
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
M67
200
1,175
3,000
13
13
26
1
40
30
1
1
1
1
![Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4]
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
$4 per machine-hour
$45 per setup
$ 160 per order
$ 125 per shipment
$ 775 per product
Activity data have been supplied for the following two products:
Production orders
Shipments
Product sustaining
Number of units produced per year
Direct labor-hours
Machine-hours
Machine setups
Production orders
Shipments
Product sustaining
Activity Cost Pool
K425
Total Expected Activity
K425
M67
2,000
M67
200
1,175
3,000
13
13
26
1
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
40
30
1
1
1
1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4d6fa1e9-36c0-4861-8dbf-8c72fa6219f2%2F4261e471-14a2-48c0-9014-ce123976542e%2Fshf7hbi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4]
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
$4 per machine-hour
$45 per setup
$ 160 per order
$ 125 per shipment
$ 775 per product
Activity data have been supplied for the following two products:
Production orders
Shipments
Product sustaining
Number of units produced per year
Direct labor-hours
Machine-hours
Machine setups
Production orders
Shipments
Product sustaining
Activity Cost Pool
K425
Total Expected Activity
K425
M67
2,000
M67
200
1,175
3,000
13
13
26
1
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
40
30
1
1
1
1
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