er Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing syst
Customer representative salaries and expenses 280,000
Office expenses 140,000
Administrative expenses 440,000
Total cost $ 2,420,000
The distribution of resource consumption across the activity cost pools is as follows:
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 Rate
Supporting direct labor $ 10 per direct labor-hour
Machine processing $ 4 per machine-hour
Machine setups $ 50 per setup
Production orders $ 150 per order
Shipments $ 115 per shipment
Product sustaining $ 800 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 30
Machine-hours 3,400 20
Machine setups 11 3
Production orders 11 3
Shipments 22 3
Product sustaining 3 3
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?