Kamili Company started and completed work on 25 different jobs during the year. One of these jobs was Job #781. Job #781 required 16 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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3
Kamili Company has the following three manufacturing overhead cost
drivers.
Cost Driver
Design changes
Machine setups
Electricity usage
Level of Activity
$2,680
$3,080
$3,260
$1,550
$3,580
$2,860
100 changes per year
2,000 setups per year
12,000 kilowatt-hours per year
Overhead
Cost
$ 5,000
18,000
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 16 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.
Transcribed Image Text:3 Kamili Company has the following three manufacturing overhead cost drivers. Cost Driver Design changes Machine setups Electricity usage Level of Activity $2,680 $3,080 $3,260 $1,550 $3,580 $2,860 100 changes per year 2,000 setups per year 12,000 kilowatt-hours per year Overhead Cost $ 5,000 18,000 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 16 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.
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