Question

Job Costs Using Activity-Based Costing 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 $55,000 Number of moves 2,500 Engineering 101,500 Number of change orders 7,000 Other overhead 180,000 Direct labor hours 50,000

Job Costs Using Activity-Based Costing 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 $55,000 Number of moves 2,500 Engineering 101,500 Number of change orders 7,000 Other overhead 180,000 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 $20,800 $17,200 $0 Beginning balance Direct materials $2,400 $ 10,900 $5,900 $8,600 $11,700 Direct labor cost $870 $1,090 $1,700 $140 Job 13-43 Job 13-44 Job 13-45 Job 13-46 46 46 28 4 Number of moves Number of change orders Direct labor hours 32 37 15 19 870 1,090 1,700 140 By July 31, Jobs 13-43 and 13-44 were completed and sold. Jobs 13-45 and 13-46 were still in process. Required: 1. Calculate the activity rates for each of the three overhead activities. Round all activity rates to the nearest cent. Materials handling rate $ per move Engineering rate $ per change order Other overhead rate $ per direct labor hour

Answer 1

Weaking Notes Activity cost Prourtel driven Activity water Material hordlog 55000 Inginasing 1101500 4000 1975 Ctrlen overhead 180000 50000 3.6 ANGLOLA Materials handling set I pou move Ergincoing mata pea change onde othes ovosthead mate 3.6 per dibud labhace 2) Working Notes: Job 13.43_Act. Rate Total Mateu olhandling 1012 Engineering 1405 464 sther Orchead 810 x 3.6 3132 4608 Job 13-44 Material handling Engineering AMD Overload Act Doiven Act. late Total 46 X 1012 37 х 1405 536-5 1090 X 3.6 3924 5472-5. Z Jolo 13. 19-45 Moleciotherdling Engineering other overhead Det. Dodvou 28 15 Hoo Х Х Act. Rate Total de 616 . 14.5 217.5 3.6. 695365 2 b12

Job 13-db. Material handling Engar cering Act. Doiveen Act. Rate Total # 88 19 X 111.5 -2105.5 DO X 3.6 8670.5 olen Overhead 504 Answers Heitge1 company Job-order cost sheets 5613-28 To 13-24 Job 13-45. Tol13-16 Balance July 20,800 11200 Q400 Direct matcial 5900 8600 10900 11 700 Direct labour 870 1090 1100 140 Material handling 2012 1012 616 88 Engineering 164 536.51 214.5 215.15 Othg Overhead 3132 3924 blao 504 Total 32,178 132.362-5/21,953.512,707.5 3) Balance in Wicak in pecess on July 31 Ansupe91: Job 13-45 and Job 13-116 were still in preceu Total 5cb 13-215 Q1953-5 ob 13-16 1.2.101.5 34601 Palance in Wap on July 3,1661

3 Job 13-23 Job 13-44 1) cost of goods sold for July 32,178 32 362.5 64,540.5 3 crest of -goods sold for July.li 4,510.5. 5 Job 13.46 Job 13 -46 Total « Engineering Newcast: the cost of the other jobs will incuase with engineering change ondern But Job 13.-16 col de cacease, doithout'engincórring ondern. Please Upvote. 12 T04:5 915.5 122132
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