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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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
Product sustaining
Activity data have been supplied for the following two products:
Number of units produced per year
Direct labor-hours i
Machine-hours.
Machine setups
Production orders.
Shipments
Product sustaining
Activity Cost Pool
Supporting direct labor
Machine processing
Machine setups
Activity Rates
$7 per direct labor-hour
$4 per machine-hour
$45 per setup
$160 per order
Production orders
Shipments
Product sustaining
Total overhead cost
K425
$ 120 per shipment
$ 800 per product
Total Expected Activity
K425
M67
2,000
M67
200
1,175
2,400
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
19
19
38
3
40
30
3
3
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Transcribed Image Text: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
Product sustaining
Activity data have been supplied for the following two products:
Number of units produced per year
Direct labor-hours i
Machine-hours.
Machine setups
Production orders.
Shipments
Product sustaining
Activity Cost Pool
Supporting direct labor
Machine processing
Machine setups
Activity Rates
$7 per direct labor-hour
$4 per machine-hour
$45 per setup
$160 per order
Production orders
Shipments
Product sustaining
Total overhead cost
K425
$ 120 per shipment
$ 800 per product
Total Expected Activity
K425
M67
2,000
M67
200
1,175
2,400
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
19
19
38
3
40
30
3
3
www
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