Klumper Corporation is a diversified manufacturer of industr

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 Rates $9.00 per direct labor-hour S3.00 per machine-hour Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining 545.00 per setup $170.00 per order $110.00 per shipment $850.00 per product Activity data have been supplied for the following two products Total Expected Activity K425 M67 200 1,050 2,800 2,000 30 20 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Required Determine 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 orders Shipments Product sustaining Total overhead cost K425 M67

Solution

Determine Total overhead cost under activity based costing :

	K425	M67
Supporting direct labour	9450	270
Machine processing	8400	60
Machine setups	495	90
Production orders	1870	340
Shipments	2420	220
Product sustaining	1700	1700
Total overhead cost	24335	2680