Question: EXERCISE 7-4 Second-Stage Allocation (L07-4) Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity based costing system contains the following six activity
EXERCISE 7-4 Second-Stage Allocation (L07-4) 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 Supporting direct labor Machine processing Machine setups Production orders Shipments .... Product sustaining Activity Rates $6.00 per direct labor-hour $4.00 per machine-hour $50.00 per setup $90.00 per order $14.00 per shipment $840.00 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 .... Product sustaining Total Expected Activity K425 M67 200 2,000 80 500 100 1,500 1 4 1 4 1 10 1 Required: Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system
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