2 10 points Exercise 7-4 (Algo) Second-Stage Allocation [LO7-4] Klumper Corporation is a diversified manufacturer of Industrial goods. The company's activity-based costing system contains th following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Activity Rate $9 Production orders Shipments Product sustaining per direct labor-hour $5 per machine-hour $ 35 per setup $ 160 per order $ 130 per shipment $ 775 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Total Expected Activity K425 M67 200 2,000 1,150 60 2,400 50 11 3 11 3 22 3 3 3 Product sustaining Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Answer is complete but not entirely correct. Activity Cost Pool K425 M67 Supporting direct labor $ 480 S Machine processing 400 3,000 6,000 Machine setups 50 200 x Production orders 90 360 x Shipments 14 140x Product sustaining 840 840 Total overhead cost $ 1,874 S 10,540