Klumper Corporation is a diversified manufacturer of industrial goods. The company?s ABC system has the following six activity cost pools and activity rates:

Cost and activity data have been supplied for the following products:

Required:

Compute the unit product cost of each of the products listed above.

Transcribed Image Text:

Activity Cast Pool Activity Rates Labour related per direct labour-hour $ 18.00 Machine related 18.00 per machine-hour Machine setups 50.00 per setup Production orders 120.00 per order per shipment 18.00 Shipments 38.00 per direct labour-hour General factory K425 M67 Direct materials cost per unit $126.00 $212.00 Direct labour cost per unit $4.50 $7.20 Number of units produced per year 4,000 400