Question: Please help! Exercise 7-4 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
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Exercise 7-4 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 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rates $ 8 per direct labor-hour $ 3 per machine-hour $ 40 per setup S 160 per order $ 120 per shipment $850 per product Activity data have been supplied for the following two products Total Expected Activit K425 M67 Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining 200 1,200 3,000 2,000 50 40 18 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool Suppoing direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost K425 M67
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