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Calculator Job Costs Using Activity-Based Costing Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Heiter identified three
Calculator Job Costs Using Activity-Based Costing Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Heiter identified three overhead activities and related drivers. Budgeted information for the year is as follows Activity Driver Amount of Driver Materials handling Cost $72,000 165,000 280,000 Number of moves Number of change orders Direct labor hours 3.000 10,000 50.000 Engineering Other overhead Heitger worked on four jobs in July. Data are as follows: Job 13-43 Job 13-44 Job 13-45 Job 13-46 $20,300 $19,800 $2,300 50 Beginning balance Direct materials $6,500 $18,000 $8,900 $20,000 $12,700 $32,000 $9,800 $2,400 Direct labor cost Job 13-43 Job 13-44 Job 13-45 Job 13-46 Number of moves 44 52 295 Number of change orders 30 4 0 .20 20 Direct labor hours 900 1,000 1,600 1 20 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 s 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. If an amount is zero, enter "o". Heitger Company Job-Order Cost Sheets Balance July 1 Direct materials Direct labor cost Materials handling Engineering Job 13-43 20,300 6,500 18,000 Job 13-44 $ 19,800 8.900 20,000 Job 13-45 $ 2,300 12,700 32,000 Job 13.46 0 9,800 2,400 Previous Submit Tests All work saved. Address bwOnline.com f (1) Facebook Student Access Mo... Basic Letters and K.. Naver V Live - Vide... Calculator Job 13-43 Job 13-44 Job 13-45 Job 13-46 Number of change orders 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 Required: 1. Calculate the activity rates for each of the three overhead activities. Round al activity rates to the nearest cent. Materials handling rate $ Engineering rate Other overhead rate per move per change order per direct labor hour s 2. Prepare job-order cost sheets for each job showing all costs through July 31. If an amount is zero, enter "o". Heitger Company Job-Order Cost Sheets Job 1343 5 20.300 6.500 18.000 Balance, July 1 Direct materials Direct labor cost Macerals handling Engineering Other overhead Total 3. Calculate the balance in Work in Process on July 31. 4. Calculate the cos higher old for July. lower 5. What if Job 13-4 no effect he engineering change orders? What is the difference in the new cost of Job 13-467 How would the cost of the other jobs be affected? Previous Next All work saved Subut Test for Grading Address
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