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	$	11	per direct labor-hour
Machine processing	$	3	per machine-hour
Machine setups	$	50	per setup
Production orders	$	150	per order
Shipments	$	120	per shipment
Product sustaining	$	750	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	1,025	50
Machine-hours	3,600	40
Machine setups	21	1
Production orders	21	1
Shipments	42	1
Product sustaining	1	1

Required:

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

Answer 1