SNKlumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains thefollowing six activity cost pools and activity rates:Activity Cost PoolSupporting direct laborMachine processingMachine setupsProduction ordersShipments$ 125 per shipmentProduct sustaining$ 750 per productActivity data have been supplied for the following two products:Number of units produced per yearDirect labor-hoursMachine-hoursMachine setupsProduction ordersShipmentsProduct sustainingActivity Cost PoolSupporting direct laborMachine processingMachine setupsProduction ordersShipmentsProduct sustainingTotal overhead costActivity Rate$8 per direct labor-hour$3 per machine-hour$45 per setup$ 150 per order$K425Total Expected ActivityK425M672,000500 $2001,0253,000Required:How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?1717M67342N44222840

Activity Rate:— It is the rate used to allocate manufacturing overhead cost to cost object under…

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

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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 3PA: Activity-based and department rate product costing and product cost distortions Black and Blue...

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