Question: 4 6 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 the
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4 6 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 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 $40 per setup Production orders. $ 150 per order. Shipments $ 115 per shipment Product sustaining $ 875 per product Activity data have been supplied for the following two products: Total Expected Activity K425 M67 2,000 Number of units produced per year 200 Direct labor-hours. 1,175 50 Machine-hours 2,600 40 Machine setups 15 3 Production orders 15 3 Shipments 30 3 Product sustaining 3 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Returr 4 6 points 15 3 Machine setups Production orders 15 Shipments 30 Product sustaining Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? X Answer is complete but not entirely correct. Activity Cost Pool K425 M67 Supporting direct labor $ 280 x Machine processing 90 X Machine setups 40 x Production orders. 150 x Shipments 115 X Product sustaining 825 X Total overhead cost $ $ 7,000 9,000 X 600 2,250 3,450 825 X 23,125 $ 1,500 Returr 5 Exercise 7-5 (Algo) Product and Customer Profitability Analysis [LO7-4, LO7-5] Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management has designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost Pool Activity Rate Supporting direct labor $20 per direct labor-hour Order processing $ 188 per order Custom design processing $ 262 per custom design Customer service $ 420 per customer Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months: Standard Model Custom Design Number of gliders 16 2 Number of orders. 2 2 Number of custom designs 0 2 Direct labor-hours per glider 30.50 33.00 $ 2,420 Selling price per glider $ 1,875 Direct materials cost per glider. $ 454 $ 572 The company's direct labor rate is $16 per hour. Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your intermediate landet! me and finanke them m m m ma al sesleala dallam cinka ala 4 points Returr
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