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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A
![n
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 Rate
$9 per direct labor-hour
$3 per machine-hour
$ 45 per setup
$ 150 per order
$ 130 per shipment
$775 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
Total Expected Activity.
K425
M67
2,000
K425
200
1,150
3,400
9
9
M67
18
2
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
40
30
2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F00b46d52-9362-441c-b6de-66adf621b2fa%2Fe2b0f542-aaaf-48e8-9a98-e089049a659a%2Furmprhi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:n
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 Rate
$9 per direct labor-hour
$3 per machine-hour
$ 45 per setup
$ 150 per order
$ 130 per shipment
$775 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
Total Expected Activity.
K425
M67
2,000
K425
200
1,150
3,400
9
9
M67
18
2
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
40
30
2
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