Please help me : Klumper Corporation is a diversified manufacturer of industrial

Question

Please help me :

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 data have been supplied for the following two products:

Total Expected Activity

Required:

How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?

Activity Cost Pool Activity Rates Supporting direct labor $ 6 per direct labor-hour Machine processing $ 3 per machine-hour Machine setups $ 40 per setup Production orders $ 170 per order Shipments $ 120 per shipment Product sustaining $ 825 per product 2 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 per direct labor-hour $ 3 per machine-hour $ 40 per setup $ 170 per orde points 120 per shipment $825 per product eBook Activity data have been supplied for the following two products: Hint Total Expected Activit K425 M67 Print Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining 200 1,025 2,600 17 17 34 2,000 40 30 References Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Cost Pool K425 M67 Supporting direct labor Machine setups Production orders Product sustaining Total overhead cost

Explanation / Answer

Calculate total overhead cost :

K425 M67 Supporting direct labour 6150 240 Machine processing 7800 90 Machine setups 680 40 Production orders 2890 170 Shipments 4080 120 Product sustaining 825 825 Total overhead cost 22425 1485

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