3 Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Cost Pool Supporting direct labor Machine processing Machine setups K425 Total Expected Activity K425 M67 200 2,000 1,150 3,000 M67 15 15 30 2 60 50 2 NNNN 2 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 2 2

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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3
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
$2 per machine-hour
$40 per setup
$ 160 per order.
$ 125 per shipment.
$900 per product
Transcribed Image Text:3 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 $2 per machine-hour $40 per setup $ 160 per order. $ 125 per shipment. $900 per product
3
Activity data have been supplied for the following two products:
Number of units produced per year
Direct labor-hours
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
K425
Total Expected Activity
K425
M67
2,000
60
50
M67
200
1,150
3,000
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
15
15
30
2
OONN222
Transcribed Image Text:3 Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours 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 K425 Total Expected Activity K425 M67 2,000 60 50 M67 200 1,150 3,000 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 15 15 30 2 OONN222
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