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:
costing system contains the following six activity cost pools and activity rates:
| Activity Cost Pool | Activity Rates | ||
| Supporting direct labor | $7.00 | per direct labor-hour | |
| Machine processing | $3.00 | per machine-hour | |
| Machine setups | $35.00 | per setup | |
| Production orders | $170.00 | per order | |
| Shipments | $125.00 | per shipment | |
| Product sustaining | $800.00 | 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 | 1,125 | 30 | |
| Machine-hours | 3,200 | 20 | |
| Machine setups | 17 | 1 | |
| Production orders | 17 | 1 | |
| Shipments | 34 | 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.  Explanation:
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