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 $66,000 Number of moves 3,000 Engineering 101,500 Number of change orders 7,000 Other overhead 172,800 Direct labor hours 48,000 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 $20,000 $19,100 $2,300 $0 Direct materials $6,800 $9,550 $10,200 $8,300 Direct labor cost $860 $1,010 $1,530 $100 Job 13 43 Job 13 44 Job 13 45 Job 13 46 Number of moves 45 48 34 7 Number of change orders 33 36 18 24 Direct labor hours 860 1,010 1,530 100 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 $fill in the blank 931133fdffaafc8 1 per move Engineering rate $fill in the blank 931133fdffaafc8 2 per change order Other overhead rate $fill in the blank 931133fdffaafc8 3 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 $fill in the blank 3766220b001d033 1 $fill in the blank 3766220b001d033 2 $fill in the blank 3766220b001d033 3 $fill in the blank 3766220b001d033 4 Direct materials fill in the blank 3766220b001d033 5 fill in the blank 3766220b001d033 6 fill in the blank 3766220b001d033 7 fill in the blank 3766220b001d033 8 Direct labor cost fill in the blank 3766220b001d033 9 fill in the blank 3766220b001d033 10 fill in the blank 3766220b001d033 11 fill in the blank 3766220b001d033 12 Materials handling fill in the blank 3766220b001d033 13 fill in the blank 3766220b001d033 14 fill in the blank 3766220b001d033 15 fill in the blank 3766220b001d033 16 Engineering fill in the blank 3766220b001d033 17 fill in the blank 3766220b001d033 18 fill in the blank 3766220b001d033 19 fill in the blank 3766220b001d033 20 Other overhead fill in the blank 3766220b001d033 21 fill in the blank 3766220b001d033 22 fill in the blank 3766220b001d033 23 fill in the blank 3766220b001d033 24 Total $fill in the blank 3766220b001d033 25 $fill in the blank 3766220b001d033 26 $fill in the blank 3766220b001d033 27 $fill in the blank 3766220b001d033 28 3 Calculate the balance in Work in Process on July 31 $fill in the blank ee19ca02602d054 1 4 Calculate the cost of goods sold for July $fill in the blank ee19ca02602d054 2 5 What if Job 13 46 required no engineering change orders What is the difference in the new cost of Job 13 46 $fill in the blank ee19ca02602d054 3 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 Heitger identified three overhead activities and related drivers Budgeted information for the year is as follows Amount of Driver 3,000 Activity Cost Driver Materials handling $66,000 Number of moves Engineering 101,500 Number of change orders Other overhead 172,800 Direct labor hours Heitger worked on four jobs in July Data are as follows 7,000 48,000 Job 13 43 Job 13 44 Job 13 45 Job 13 46 Beginning balance $20,000 $19,100 $2,300 $0 Direct materials $6,800 $9,550 $10,200 $8,300 Direct labor cost $860 $1,010 $1,530 $100 Job 13 43 Job 13 44 Job 13 45 Job 13 46 Number of moves 45 48 34 7 Number of change orders 33 36 18 24 Direct labor hours 860 1,010 1,530 100 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 S per change order Other overhead rate S 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

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 12, 2024

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

Activity	Cost	Driver	Amount of Driver
Materials handling	$66,000	Number of moves	3,000
Engineering	101,500	Number of change orders	7,000
Other overhead	172,800	Direct labor hours	48,000

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	$20,000	$19,100	$2,300	$0
Direct materials	$6,800	$9,550	$10,200	$8,300
Direct labor cost	$860	$1,010	$1,530	$100

	Job 13-43	Job 13-44	Job 13-45	Job 13-46
Number of moves	45	48	34	7
Number of change orders	33	36	18	24
Direct labor hours	860	1,010	1,530	100

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	$fill in the blank 931133fdffaafc8_1 per move
Engineering rate	$fill in the blank 931133fdffaafc8_2 per change order
Other overhead rate	$fill in the blank 931133fdffaafc8_3 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	$fill in the blank 3766220b001d033_1	$fill in the blank 3766220b001d033_2	$fill in the blank 3766220b001d033_3	$fill in the blank 3766220b001d033_4
Direct materials	fill in the blank 3766220b001d033_5	fill in the blank 3766220b001d033_6	fill in the blank 3766220b001d033_7	fill in the blank 3766220b001d033_8
Direct labor cost	fill in the blank 3766220b001d033_9	fill in the blank 3766220b001d033_10	fill in the blank 3766220b001d033_11	fill in the blank 3766220b001d033_12
Materials handling	fill in the blank 3766220b001d033_13	fill in the blank 3766220b001d033_14	fill in the blank 3766220b001d033_15	fill in the blank 3766220b001d033_16
Engineering	fill in the blank 3766220b001d033_17	fill in the blank 3766220b001d033_18	fill in the blank 3766220b001d033_19	fill in the blank 3766220b001d033_20
Other overhead	fill in the blank 3766220b001d033_21	fill in the blank 3766220b001d033_22	fill in the blank 3766220b001d033_23	fill in the blank 3766220b001d033_24
Total	$fill in the blank 3766220b001d033_25	$fill in the blank 3766220b001d033_26	$fill in the blank 3766220b001d033_27	$fill in the blank 3766220b001d033_28

3. Calculate the balance in Work in Process on July 31. $fill in the blank ee19ca02602d054_1

4. Calculate the cost of goods sold for July. $fill in the blank ee19ca02602d054_2

5. What if Job 13-46 required no engineering change orders? What is the difference in the new cost of Job 13-46?

$fill in the blank ee19ca02602d054_3

How would the cost of the other jobs be affected?

image text in transcribed

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: Amount of Driver 3,000 Activity Cost Driver Materials handling $66,000 Number of moves Engineering 101,500 Number of change orders Other overhead 172,800 Direct labor hours Heitger worked on four jobs in July. Data are as follows: 7,000 48,000 Job 13-43 Job 13-44 Job 13-45 Job 13-46 Beginning balance $20,000 $19,100 $2,300 $0 Direct materials $6,800 $9,550 $10,200 $8,300 Direct labor cost $860 $1,010 $1,530 $100 Job 13-43 Job 13-44 Job 13-45 Job 13-46 Number of moves 45 48 34 7 Number of change orders 33 36 18 24 Direct labor hours 860 1,010 1,530 100 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 S per change order Other overhead rate S 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