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 Activity Rate Supporting direct labor $ 7 per direct labor-hour Machine processing $3 per machine - hour Machine setups $35 per setup Production orders $ 160 per order Shipments $ 120 per shipment Product sustaining $ 875 per product Activity data have been supplied for the following two products: Total Expected Activity K425 M67 Number of units produced per year 200 2,000 Direct labor -hours 950 40 Machine - hours 3,000 30 Machine setups 7 2 Production orders 7 2 Shipments 142 Product sustaining 22 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
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 Activity Rate Supporting direct labor $ 7 per direct labor-hour Machine processing $3 per machine - hour Machine setups $35 per setup Production orders $ 160 per order Shipments $ 120 per shipment Product sustaining $ 875 per product Activity data have been supplied for the following two products: Total Expected Activity K425 M67 Number of units produced per year 200 2,000 Direct labor -hours 950 40 Machine - hours 3,000 30 Machine setups 7 2 Production orders 7 2 Shipments 142 Product sustaining 22 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...
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