How much total overhead cost would be assigned

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Question - 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

$7 per direct labor-hour

Machine processing

$5 per machine - hour

Machine setups

$40 per setup

Production orders

$160 per order

Shipments

$115 per shipment

Product sustaining

$900 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

1,000

50

Machine hours

3,400

40

Machine setups

13

2

Production orders

13

2

Shipments

26

2

Product sustaining

2

2

Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?

Reference no: EM131698046

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