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 $ 120 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 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost Activity Rate $10 per direct labor-hour $3 per machine-hour $ 40 per setup $ 150 per order $ K425 Total Expected Activity K425 M67 2,000 0 $ 200 975 2,600 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 7 7 14 2 M67 50 40 0 2 2 2 2
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 $ 120 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 Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost Activity Rate $10 per direct labor-hour $3 per machine-hour $ 40 per setup $ 150 per order $ K425 Total Expected Activity K425 M67 2,000 0 $ 200 975 2,600 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 7 7 14 2 M67 50 40 0 2 2 2 2
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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