Question

How would you answer this?

Calculator Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Heitger identified three overhead activities and related drivers. Budgeted information for the year is as follows: Activity Cost Driver Amount of Driver Materials handling $ 72,000 Number of moves 3,000 Engineering Number of change orders 10,000 165,000 280,000 Other overhead Direct labor hours 50,000 Heitger worked on four jobs in July. Data are as follows: Job 13-43 Job 13-44 Job 13-45 Job 13-46 Beginning balance $20,300 $19,800 $2,300 $0 Direct materials $6,500 $8,900 $12,700 $9,800 Direct labor cost $18,000 $20,000 $32,000 $2,400 Job 13-43 Job 13-44 Job 13-45 Job 13-46 Number of moves 44 52 295 Number of change orders 30 40 20 20 Direct labor hours 900 1,000 1,600 By July 31, Jobs 13-43 and 13-44 were completed and sold. Jobs 13-45 and 13.46 were still in process. 120 Required: < Previous Next > Email instructor Submit Test for Grading All work saved.

Answer 1

1.
	Material handling rate	=	$24.00	(72000/3000)
	Engineering rate	=	$16.50	(165000/10000)
	Other overhead	=	$5.60	(280000/50000)
2.			Job 13-43	Job 13-44	Job 13-45	Job 13 - 46
	Balance, July 1		$20,300	$19,800	$2,300	$0
	Direct material		$6,500	$8,900	$12,700	$9,800
	Direct labor cost		$18,000	$20,000	$32,000	$2,400
	Material handling		$1,056.00	$1,248.00	$696.00	$120.00
	Engineering		$495.00	$660.00	$330.00	$330.00
	Other overhead		$5,040.00	$5,600.00	$8,960.00	$672.00
	Total		$51,391	$56,208	$56,986	$13,322
3.	Work in process on july 31			$70,308	(56986+13322)
4.	Cost of goods sold	=	$107,599	(51391+56208)
5.	$330.00	Overhead reduce
	new cost will be	=	$12,992.00