Question

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 Product sustaining Activity Rates $ 10 per direct labor-hour $ 4 per machine-hour $ 45 per setup $ 160 per order $ 130 per shipment $ 750 per product Activity data have been supplied for the following two products: Total Expected Activity K425 M67 200 2,000 1,150 2,800 40 15 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining 50 15 سا سا سا سا 30 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?

Answer 1

	K425	M67
Supporting labor	11,500	500
Machine processing	11,200	160
Machine setups	675	135
Production orders	2,400	480
Shipments	3,900	390
Product shipments	2250	2250
Total	31,925	3915