Second-Stage Allocation [LO7-4]

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 per direct labor-hour Machine processing $ 3 per machine-hour Machine setups $ 45 per setup Production orders $ 150 per order Shipments $ 115 per shipment Product sustaining $ 750 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 1,075 50 Machine-hours 2,400 40 Machine setups 13 1 Production orders 13 1 Shipments 26 1 Product sustaining 1

Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?