42 Klumper Corporation is a diversified manufacturer of indu

42. 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 Rates $9.00 per direct labor-hour Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining $4 00 per machine-hour $40.00 per setup $160.00 per order $120.00 per shipment $800 00 per product Activity data have been supplied for the following two products Total Expected Activity K425 M67 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining 200 1,175 3,400 17 17 34 2,000 40 30 Required: Oetermine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system Activity Cost Pool Supporting direct labor Machine processing Machine setups Production ords Shipments Product sustaining Total overhead cost K425

Solution

Activity Cost Pool K425 M67 Supporting Direct Labor $10,575 $360 Machine processing $13,600 $120 Machine setups $680 $80 Production orders $2,720 $320 Shipments $4,080 $240 Product Sustaining $1,600 $1,600 Total Overhead Cost $33,255 $2,720 Activity Cost Pool K425 M67 Supporting Direct Labor =1175*9 =40*9 Machine processing =3400*4 =30*4 Machine setups =17*40 =2*40 Production orders =17*160 =2*160 Shipments =34*120 =2*120 Product Sustaining =2*800 =2*800 Total Overhead Cost =SUM(B2:B7) =SUM(C2:C7)