Exercise 64 SecondStage Allocation LO64 Klumper Corporation

Exercise 64 Second-Stage Allocation [LO6-4 Klumper Corporation is a divensifed manufctuner of industrial goods Supporting drect labor Production orders S 110.00 per shioment 50.00 per product Activity data have been supplied for the tolowing two products caps lock command ophon control option command

Solution

Important note: Kindly re-confirm the numbers per the workings given since the same are not clearly readable in the images posted. For example, whether the direct labor hours for M67 is 60 or 50 is not clearly readable.

Working:

Activity Cost Pool	K425	M67
Supporting direct labor	8000	480
Machine processing	8400	120
Machine setups	280	40
Production orders	1120	160
Shipments	1540	110
Product sustaining	850	850
Total overhead cost $	20190	1760