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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 | $3 | per machine hour |
| Machine setups | $45 | per setup |
| Production orders | $170 | per order |
| Shipments | $115 | per shipment |
| Product sustaining | $850 | per product |
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| Activity data have been supplied for the following two products: |
| Total Expected Activity | ||
| K425 | M67 | |
| Number of units produced per year | 1,400 | 180 |
| Direct labor hours | 1,125 | 50 |
| Machine hours | 2,600 | 40 |
| Machine setups | 13 | 1 |
| Production orders | 13 | 1 |
| Shipments | 26 | 1 |
| Product sustaining | 1 | 1 |
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| Required: |
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Determine the total overhead cost that would be assigned to each of the products listed in the activity based costing system. (Omit the “$” sign in your response.) |
| Activity Cost Pool | K425 | M67 |
| Supporting direct labor | $ | $ |
| Machine processing | ||
| Machine setups | ||
| Production orders | ||
| Shipments | ||
| Product sustaining | ||
| Total overhead cost |
$ |
$ |
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