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:

Klumper Corporation is a diversfled manufacturer of-industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates Activity Cost Pool Surporting direct labor $ 10 per direct labor-hour Machine processing Machine setups Production orders Shipments Produc sustaining Activity Rates $ 3 per machine - hour $ 40 per setup $170 per order $115 per shipment $775 per product ta have been supplied for the following two products Activity Total Expected Activity K425 М67 Number of units produced per 200 2,000 year Direct labor-hours Machine-hours Machine setups 1,150 3,200 зе 20 9 2 Production orders 9 2 Shipments Product sustaining 18 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 Shipments Product sustaining Total overhead cost

Answer 1

	K425	M67
Supporting labor	11,500	300
Machine processing	9600	60
Machine setups	360	80
Production orders	1530	340
Shipments	2070	230
Product sustaining	1550	1550
Total Overhead cost	26,610	2560