Klumper Corporation is a divers the following stx activity cost pools and activity rates: manufacturer of Industrial goods. The company's activity-oased costing system contalns Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rates $8 per direct labor-hour $ 3 per machine-hour $ 35 per setup $ 160 per order $ 120 per shipment $ 875 per product Activity data have been supplied for the following two products: Total Expected Activity K425 200 1,025 3,400 13 13 26 2 M67 Number of units produced per year Direct labor-hours 2,000 50 40 Machine-hours Machine setups Production orders 2 Shipments Product sustaining Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...
icon
Related questions
icon
Concept explainers
Topic Video
Question
Klumper Corporation Is a diversified manufacturer of Industrial goods. The company's activity-based costing system contalns
the following stx activity cost pools and activity rates:
Activity Cost Pool
Supporting direct labor
Machine processing
Machine setups
Production orders
Activity Rates
$8 per direct labor-hour
$ 3 per machine-hour
$ 35 per setup
$ 160 per order
$ 120 per shipment
$ 875 per product
Shipments
Product sustaining
Activity data have been supplied for the following two products:
Total Expected Activity
K425
M67
Number of units produced per year
2,000
50
200
Direct labor-hours
1,825
3,480
13
Machine-hours
40
Machine setups
Production orders
Shipments
Product sustaining
2
13
2
26
2
Requlred:
How much total overhead cost would be assigned to K425 and M67 using 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
이 $
Transcribed Image Text:Klumper Corporation Is a diversified manufacturer of Industrial goods. The company's activity-based costing system contalns the following stx activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Activity Rates $8 per direct labor-hour $ 3 per machine-hour $ 35 per setup $ 160 per order $ 120 per shipment $ 875 per product Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity K425 M67 Number of units produced per year 2,000 50 200 Direct labor-hours 1,825 3,480 13 Machine-hours 40 Machine setups Production orders Shipments Product sustaining 2 13 2 26 2 Requlred: How much total overhead cost would be assigned to K425 and M67 using 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 이 $
Foam Products, Incorporated, makes foam seat cushlons for the automotive and aerospace Industries. The company's activity-
based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates:
Activity Cost Pool
Supporting direct labor
Batch processing
Order processing
Customer service
Activity Measure
Number of direct labor-hours
Activity Rate
$ 11 per direct labor-hour
$ 93 per batch
$ 298 per order
$ 2,611 per customer
Number of batches
Number of orders
Number of customers
The company Just completed a single order from Interstate Trucking for 1,900 custom seat cushlons. The order was produced
In five batches. Each seat cushlon required 0.4 direct labor-hours. The selling price was $142.20 per unit, the direct materials
cost was $111 per unit, and the direct labor cost was $14.60 per unit. This was Interstate Trucking's only order during the year.
Required:
Calculate the customer margin on sales to Interstate Trucking for the year.
Interstate Trucking
Customer Margin-ABC Analysis
Costs:
Customer margin
Transcribed Image Text:Foam Products, Incorporated, makes foam seat cushlons for the automotive and aerospace Industries. The company's activity- based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Supporting direct labor Batch processing Order processing Customer service Activity Measure Number of direct labor-hours Activity Rate $ 11 per direct labor-hour $ 93 per batch $ 298 per order $ 2,611 per customer Number of batches Number of orders Number of customers The company Just completed a single order from Interstate Trucking for 1,900 custom seat cushlons. The order was produced In five batches. Each seat cushlon required 0.4 direct labor-hours. The selling price was $142.20 per unit, the direct materials cost was $111 per unit, and the direct labor cost was $14.60 per unit. This was Interstate Trucking's only order during the year. Required: Calculate the customer margin on sales to Interstate Trucking for the year. Interstate Trucking Customer Margin-ABC Analysis Costs: Customer margin
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College