s 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 Number of units produced per year Direct labor-hours Production orders Shipments $ 125 per shipment Product sustaining $750 per product Activity data have been supplied for the following two products: 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 Activity Rate $8 per direct labor-hour $3 per machine-hour $ $45 per setup $150 per order K425 Total Expected Activity K425 M67 2,000 0 S 200 1,025 3,000 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 17 17 34 M67 2 50 40 NNNN

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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N
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
Product sustaining
$ 750 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 Cost Pool
Supporting direct labor
Machine processing
Machine setups
Production orders
Shipments
Product sustaining
Total overhead cost
Activity Rate
$8 per direct labor-hour
$3 per machine-hour
$45 per setup
$ 150 per order
$
K425
Total Expected Activity
K425
M67
2,000
50
0 $
200
1,025
3,000
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
17
17
M67
34
2
N442228
40
Transcribed Image Text:S N 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 Product sustaining $ 750 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 Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost Activity Rate $8 per direct labor-hour $3 per machine-hour $45 per setup $ 150 per order $ K425 Total Expected Activity K425 M67 2,000 50 0 $ 200 1,025 3,000 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 17 17 M67 34 2 N442228 40
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