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 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 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 13-45 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. Required: 1. Calculate the activity rates for each of the three overhead activities. Round all activity rates to the nearest cent. Materials handling rate $ 24 per move Engineering rate $ 16.5 per change order Other overhead rate 5.6 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 "0". Heitger Company Job-Order Cost Sheets Job 13-43 Job 13-44 Job 13-45 Job 13-46 Balance, July 1 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 Materials handling 1,056 1,248 696 120 Engineering 4,950 6,600 X 3,300 X 3,300 Other overhead 5,040 5,600 8,960 672 Total 55,846 x 62,148 X $ 59,956 X $ 16,292 Feedback Check My Work 2. The job-order cost sheet must include a unique number or name for this particular job, all direct costs, and all overhead costs associated with the job. 3. Calculate the balance in Work in Process on July 31. $ 76,248 X 4. Calculate the cost of goods sold for July. $ 117,994 X 5. What if Job 13-46 required no engineering change orders? What is the difference in the new cost of Job 13-46? 3,300 X lower How would the cost of the other jobs be affected? no effect