Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4] 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 $ 120 per shipment $ 800 per product Product sustaining 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 Activity Rates $7 per direct labor-hour S4 per machine-hour $45 per setup $ 160 per order K425 Total Expected Activity K425 M67 2,000 M67 200 1,175 2,400 19 19 38 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 3 40 30 3 3

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