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

$2$ points

$(1)$

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:

$\backslash$table$[[$Activity Cost Pool,Activity Rates$],[$Supporting direct labor,$$7$ per direct labor$-$hour$],[$Machine processing,$$4$ per machine$-$hour$],[$Machine setups,$$35$ per setup$],[$Production orders,$$150$ per order$],[$Shipments$,$$$125$ per shipment$],[$Product sustaining,$$800$ per product$]]$

Activity data have been supplied for the following two products:

$\backslash$table$[[,$Total Expected Activity,$],[,$K$425,$M$67],[$Number of units produced per year,$200,2,000],[$Direct labor$-$hours,$1,200,60],[$Machine$-$hours,$3,200,50],[$Machine setups,$9,1],[$Production orders,$9,1],[$Shipments$,18,1],[$Product sustaining,$1,1]]$

Required:

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

$\backslash$table$[[$Activity Cost Pool,K$425,$M$67],[$Supporting direct labor,,$],[$Machine processing,,$],[$Machine setups,,$],[$Production orders,,$],[$Shipments$,,],[$Product sustaining,,$],[$Total overhead cost,,$]]$