Accounting Klumber Corporation Discussion

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  1. Klumber 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 POOLACTIVITY RATESSupporting Direct Labor$6.00 per direct labor-hourMachine Processing$4.00 per machine-hourMachine Setups$50.00 per setupProduction Orders$90.00 per orderShipments$14.00 per shipmentProduct Sustaining$840.00 per product
    Activity data have been applied for the following two products:TOTAL ACTIVITYW420Number of units produced per year100Direct labor-hours50Machine-hours150Machine setups2Production orders1Shipments3
    What is the total overhead cost assigned to one unit of the W420?$1,972$3,952$11,014$1,132

 

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