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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 $10.00 per direct labor-hour
  Machine processing $3.00 per machine-hour
  Machine setups $45.00 per setup
  Production orders $170.00 per order
  Shipments $115.00 per shipment
  Product sustaining $825.00 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 1,000    50   
  Machine-hours 2,800    40   
  Machine setups 7    1   
  Production orders 7    1   
  Shipments 14    1   
  Product sustaining 1    1   

  

Required:

Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system.

Activity Cost Pool K425 M67
Supporting direct labor
Machine processing
Machine setups
Production orders
Shipments
Product sustaining
Total overhead cost
Answer
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