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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
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 165,000 Number of change orders 10,000 Other overhead 280,000 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 $20,300 $19,800 $2,300 $0 Beginning balance Direct materials Direct labor cost $6,500 $8,900 $12,700 $9,800 $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 29 5 30 40 20 120 Number of change orders 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. 2. Prepare job-order cost sheets for each job showing all costs through July 31. 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- 462 How would the cost of the other jobs be affected
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