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 $ 7 per direct labor-hour $ 4 per machine-hour $ 40 per setup $ 150 per order $ 125 per shipment $ 825 per product Activity data have been supplied for the following two products: Total Expected Activity K425 M67 200 2,000 1,050 2,400 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Om wwww 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	7350	280
Machine processing	9600	120
Machine setups	360	120
Production orders	1350	450
Shipments	2250	375
Product sustaining	2475	2475
Total	23385	3820