cthtm Help Klumper Corporation is a diversified manufacturer of industrial goods
ID: 2395745 • Letter: C
Question
cthtm Help Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system c following six activity cost pools and activity rates Activity Cost Pooll 2.3 S 3 per machine hour $ 35 per setup $ 158 per order $ 120 per shipment Shipments Product sustainine Activity data have been supplied for the following two products: K425 Direct labor-hours Machine hours 1,158 ,908 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? M67 Machine processing Machine setups K Prex 10 of 13Next > O Type here to searchExplanation / Answer
Total Overhead Cost
Activity Cost Pool
K425
M67
Supporting Direct Labor
$ 10,350.00
$ 270.00
Machine Processing
$ 9,000.00
$ 60.00
Machine Setups
$ 175.00
$ 105.00
Production Orders
$ 750.00
$ 450.00
Shipments
$ 1,200.00
$ 360.00
Product Sustaining
$ 2,400.00
$ 2,400.00
Total Overhead Cost
$ 23,875.00
$ 3,645.00
Working Note
Calculation
(A) Activity for K425
(B) Activity for M67
(C ) Cost per Activity
K425 Overhead Cost (A*C)
M67 Overhead Cost (B*C)
Supporting Direct Labor
1150
30
$ 9.00
$ 10,350.00
$ 270.00
Machine Processing
3000
20
$ 3.00
$ 9,000.00
$ 60.00
Machine Setups
5
3
$ 35.00
$ 175.00
$ 105.00
Production Orders
5
3
$ 150.00
$ 750.00
$ 450.00
Shipments
10
3
$ 120.00
$ 1,200.00
$ 360.00
Product Sustaining
3
3
$ 800.00
$ 2,400.00
$ 2,400.00
Total Cost
$ 23,875.00
$ 3,645.00
Overhead Cost per Unit
K425
M67
Total Overhead Cost
$ 23,875.00
$ 3,645.00
Number of Units
200
2000
Overhead Cost per Unit
$ 119.38
$ 1.82
Total Overhead Cost
Activity Cost Pool
K425
M67
Supporting Direct Labor
$ 10,350.00
$ 270.00
Machine Processing
$ 9,000.00
$ 60.00
Machine Setups
$ 175.00
$ 105.00
Production Orders
$ 750.00
$ 450.00
Shipments
$ 1,200.00
$ 360.00
Product Sustaining
$ 2,400.00
$ 2,400.00
Total Overhead Cost
$ 23,875.00
$ 3,645.00
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