Determine the total overhead cost that would be assigned

Assignment Help Accounting Basics

Reference no: EM131896184

Problem

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
Supporting direct labor	$8.00	per direct labor-hour
Machine processing	$3.00	per machine-hour
Machine setups	$40.00	per setup
Production orders	$170.00	per order
Shipments	$115.00	per shipment
Product sustaining	$850.00	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	1,200	40
Machine-hours	2,200	30
Machine setups	7	1
Production orders	7	1
Shipments	14	1
Product sustaining	1	1

Required:

Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system.

Reference no: EM131896184

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