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Cornerstone 5.03 eBook 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. 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 3,000 Number of moves Number of change orders Engineering 165,000 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 Beginning balance $20,300 $19,800 $2,300 $0 Direct materials $6,500 $8,900 $12,700 $9,800 Direct labor cost $18,000 $20,000 $ $32,000 $2,400 Job 13-43 Job 13-44 Job 13-44 Job 13-45 Job 13-46 Number of moves 44 52 29 5 Number of change orders 30 40 20 20 Direct labor hours 900 1,000 1,600 120 By July 31, Jobs 13-43 and 13-44 were completed and sold. Jobs 13-45 and 13-46 were still in process. Cornerstone 5.03 eBook Calculator 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 Feedback 2. Prepare job-order cost sheets for each job showing all costs through July 31. If an amount 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 Feedback 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? $ lower