Exercise $7-4($Algo$)$ Second$-$Stage Allocation $[$LO$7-4]$

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 Rate

Supporting direct labor $ $7$ per direct labor$-$hour

Machine processing $ $3$ per machine$-$hour

Machine setups $ $50$ per setup

Production orders $ $150$ per order

Shipments $ $130$ per shipment

Product sustaining $ $775$ per product

Activity data have been supplied for the following two products:

Total Expected Activity

K$425$ M$67$

Number of units produced per year $2002,000$

Direct labor$-$hours $1,12530$

Machine$-$hours $3,40020$

Machine setups $173$

Production orders $173$

Shipments $343$

Product sustaining $33$

Required:

How much total overhead cost would be assigned to K$425$ and M$67$ using the activity$-$based costing system?Required:

How much total overhead cost would be assigned to K$425$ and M$67$ using the activity$-$based costing system?