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Exercise 5-4 (Algo) Second-Stage Allocation (LO5-4] Klumper Corporation is a diversified manufacturer of industrial goods. ThRequired: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? K425 M67 Ac

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Answer:

Activity Cost Pool K425 M67
Supporting Direct Labor (8*1100; 8*60) 8800 480
Machine Processing (3*2200; 3*50) 6600 150
Machine Setups (45*21; 45*2) 945 90
Production Orders (150*21; 150*2) 3150 300
Shipments (115*42;115*2) 4830 230
Production Sustaining (900*2; 900*2) 1800 1800
Total Overhead Cost $26125 $3050
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