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 | $48,200 | Number of moves | 2,000 | ||
Engineering | 157,700 | Number of change orders | 9,500 | ||
Other overhead | 256,500 | Direct labor hours | 45,000 |
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 | $24,200 | $17,200 | $3,200 | $0 | ||||
Direct materials | $6,600 | $8,600 | $11,200 | $11,300 | ||||
Direct labor cost | $820 | $1,010 | $1,700 | $110 |
Job 13-43 | Job 13-44 | Job 13-45 | Job 13-46 | |||||
Number of moves | 40 | 51 | 32 | 7 | ||||
Number of change orders | 34 | 40 | 22 | 24 | ||||
Direct labor hours | 820 | 1,010 | 1,700 | 110 |
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 |
2. Prepare job-order cost sheets for each job showing all costs through July 31.
When required, round your answers to the nearest dollar. If an amount is zero, enter "0".
Heitger Company | ||||
Job-Order Cost Sheets | ||||
Job 13-43 | Job 13-44 | Job 13-45 | Job 13-46 | |
Balance, July 1 | $ | $ | $ | $ |
Direct materials | ||||
Direct labor cost | ||||
Materials handling | ||||
Engineering | ||||
Other overhead | ||||
Total | $ | $ | $ | $ |
3. Calculate the balance in Work in Process on
July 31.
$
4. Calculate the cost of goods sold for
July.
$
5. What if Job 13-46 required no engineering change orders? What is the difference in the new cost of Job 13-46?
$
How would the cost of the other jobs be affected?
Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs....
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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 $56,250 Number of moves 2,500 Engineering 142,500 Number of change orders 9,500 Other overhead 209,100 Direct labor hours 51,000 Heitger worked on four jobs in July. Data are as follows: Job 13-43 Job 13-44 Job...
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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 $56,250 Number of moves 2,500 Engineering 142,500 Number of change orders 9,500 Other overhead 209,100 Direct labor hours 51,000 Heitger worked on four jobs in July. Data are as follows: Job 13-43 Job 13-44 Job...
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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 $92,400 Number of moves 4,000 Engineering 93,600 Number of change orders 6,000 Other overhead 230,300 Direct labor hours 49,000 Heitger worked on four jobs in July. Data are as follows: Job 13-43 Job 13-44 Job...
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