Question

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	Activity Rates
Supporting direct labor	$	9	per direct labor-hour
Machine processing	$	2	per machine-hour
Machine setups	$	35	per setup
Production orders	$	170	per order
Shipments	$	125	per shipment
Product sustaining	$	900	per product

Activity data have been supplied for the following two products:

	Total Expected Activity
	K425	M67
Number of units produced per year	200	2,000
Direct labor-hours	925	40
Machine-hours	2,400	30
Machine setups	9	2
Production orders	9	2
Shipments	18	2
Product sustaining	2	2

Required:

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

Answer 1

Ans : PLEASE GV A RATING IF U LIKE MY EFFORTS , IT WILL KEEP US MOTIVATED. THANK YOU in advance

Activity Cost Pool	K425 $$	M67 $$
Supporting direct labor ( $9 * 925 / 40)	8325	360
Machine processing ( $2 * 2400 / 30 )	4800	60
Machine setups ($ 35 * 9 / 2 )	315	70
Production orders ($ 170 * 9 / 2 )	1530	340
Shipments ($ 125 * 18 / 2 )	2250	250
Product sustaining ( $ 900 * 2 / 2 )	1800	1800
Total Overhead Cost	19020	2880