Ask Question
2 December, 04:45

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 $ 8 per direct labor-hour Machine processing $ 4 per machine-hour Machine setups $ 40 per setup Production orders $ 160 per order Shipments $ 115 per shipment Product sustaining $ 850 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 975 30 Machine-hours 3,000 20 Machine setups 9 1 Production orders 9 1 Shipments 18 1 Product sustaining 1 1 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?

+2
Answers (1)
  1. 2 December, 04:52
    0
    Instructions are listed below.

    Explanation:

    Giving the following information:

    The company's activity-based costing system contains the following six activity cost pools and activity rates:

    Supporting direct labor $ 8 per direct labor-hour

    Machine processing $ 4 per machine-hour

    Machine setups $ 40 per setup

    Production orders $ 160 per order

    Shipments $ 115 per shipment

    Product sustaining $ 850 per product

    Activity data have been supplied for the following two products:

    K425

    Number of units produced per year 200

    Direct labor-hours 975

    Machine-hours 3,000

    Machine setups 9

    Production orders 9

    Shipments 18

    Product sustaining 1

    M67

    Number of units produced per year 2,000

    Direct labor-hours 30

    Machine-hours 20

    Machine setups 1

    Production orders 1

    Shipments 1

    Product sustaining 1

    Allocated overhead:

    K415:

    Supporting direct labor $ 8*975 = 7,800

    Machine processing $ 4*3,000 = 12,000

    Machine setups $ 40*9 = 360

    Production orders $ 160*9 = 1,440

    Shipments $ 115*18 = 2,070

    Product sustaining $ 850*1 = 850

    Total = $24,520

    M67

    Supporting direct labor $ 8*30 = 240

    Machine processing $ 4*20 = 80

    Machine setups $ 40*1 = 40

    Production orders $ 160*1 = 160

    Shipments $ 115*1 = 115

    Product sustaining $ 850*1 = 850

    Total = $1,485
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers