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 $3 per machine-hour $ 50 per setup $ 170 per order $125 per shipment $ 800 per product 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 Required: Total Expected Activity K425 M67 200 2,000 950 50 2,600 40 7 1 7 1 14 1 1 1 How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost M67
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 $3 per machine-hour $ 50 per setup $ 170 per order $125 per shipment $ 800 per product 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 Required: Total Expected Activity K425 M67 200 2,000 950 50 2,600 40 7 1 7 1 14 1 1 1 How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost M67
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 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...
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