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:

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
Labor related	$	7.40	per direct labor-hour
Machine related	$	3.41	per machine-hour
Machine setups	$	41.00	per setup
Production orders	$	195.00	per order
Shipments	$	106.00	per shipment
General factory	$	3.81	per direct labor-hour

Cost and activity data have been supplied for the following products:

 

	K425		M67
Direct materials cost per unit	$	5.72	$	39.99
Direct labor cost per unit	$	3.72	$	6.54
Number of units produced per year		3,900		40

	Total Expected Activity
	K425		M67
Direct labor-hours	890		30
Machine-hours	3,400		35
Machine setups	8		1
Production orders	6		1
Shipments	10		1

Required:

Compute the unit product cost of each product listed above. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

 

	K425	M67
Unit product cost	$	$

 

Explanation:

The overhead costs assigned to each product would be computed as follows:

 

	K425			M67
	Expected Activity	Amount		Expected Activity	Amount
Labor related, at $7.40 per direct labor-hour	890	$	6,586	30	$	222
Machine related, at $3.41 per machine-hour	3,400		11,594	35		119
Machine setups, at $41.00 per setup	8		328	1		41
Production orders, at $195.00 per order	6		1,170	1		195
Shipments, at $106.00 per shipment	10		1,060	1		106
General factory, at $3.81 per direct labor hour	890		3,391	30		114
Total overhead cost assigned (a)		$	24,129		$	798
# of units produced			3,900			40
Overhead cost per unit		$	6.19		$	19.94

The product costs combine direct materials, direct labor, and overhead costs as follows:

 

	K425			M67
Direct materials	$	5.72		$	39.99
Direct labor		3.72			6.54
Manufacturing overhead (see above)		6.19			19.94
Unit product cost	$	15.63		$	66.47