Question
4-Kamili Company has the following three manufacturing overhead cost drivers. Overhead Cost Driver Level of Activity Cost Design changes 100 changes per year $ 5,000
4-Kamili Company has the following three manufacturing overhead cost drivers.
Overhead
Cost Driver Level of Activity Cost
Design changes 100 changes per year $ 5,000
Machine setups 2,000 setups per year 18,000
Electricity usage 12,000 kilowatt-hours per year 36,000
Kamili Company started and completed work on 25 different jobs during the year. One of these jobs was Job #781. Job #781 required eight design changes, 40 machine setups, and 700 kilowatt-hours of electricity. How much manufacturing overhead should be allocated to Job #781? Note: Kamili uses activity-based costing.
$3,580 $2,680 $3,080 $2,860 $1,550 $2,360 |
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