Business, 27.02.2020 23:58 komari0217
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 $10.00 per direct labor-hour
Machine processing $3.00 per machine-hour
Machine setups $50.00 per setup
Production orders $160.00 per order
Shipments $115.00 per shipment
Product sustaining $775.00 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 1,025 30
Machine-hours 2,200 20
Machine setups 7 1
Production orders 7 1
Shipments 14 1
Product sustaining 1 1
Required:
1. 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 K425 M67
Supporting Direct Labor
Machine Processing
Machine Setups
Production Orders
Shipments
Product Sustaining
Total Overhead Cost
Answers: 2
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Klumper Corporation is a diversified manufacturer of industrial goods. The company’s activity based<...
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