Kamili Company has the following three manufacturing overhead costdrivers. Cost Driver Level of Activity Overhead 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 jobsduring the year. One of these jobs was Job #781. Job #781 required eightdesign changes, 20 machine setups, and 700 kilowatt-hours ofelectricity. How much manufacturing overhead should be allocated to Job#781? Note: Kamili uses activity-based costing.
a. $3,080
b. $2,860
c. $2,360
d. $3,580
e. $2,680
f. $1,550

Peppy roaney believes that pizza is a much more versatile dish than most people realize. as the national marketing manager for pizza guys, he observed how consumers were delighted with barbecue pizza, hawaiian pizza, mexican pizza and other unique combinations. his suggestions for other unusual pizzas, however, were met with a negative response by his superiors. even some of his colleagues laughed at his ideas. peppy's confidence in his ability to understand the market has led him to focus on planning a business of his own. peppy realizes that he will take a risk when he leaves his job with pizza guys and embarks upon a new venture: peppy's pizzazzeria. peppy is excited about the potential of profitably catering to the unmet desires of pizza consumers. peppy is confident that peppy's pizzazzeria will be a success, but only if he has enough money to do things right. since peppy has very little personal wealth, he knows he must obtain financial assistance. in order to prepare for meetings with bankers and p

Used cars usually have options: higher depreciation rate than new cars lower financing costs than new cars lower insurance premiums than new cars lower maintenance costs than new cars

Wallis company manufactures only one product and uses a standard cost system. the company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. all of the company's manufacturing overhead costs are fixed—it does not incur any variable manufacturing overhead costs. the predetermined overhead rate is based on a cost formula that estimated $2,886,000 of fixed manufacturing overhead for an estimated allocation base of 288,600 direct labor-hours. wallis does not maintain any beginning or ending work in process inventory.