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 $65,000 Number of moves 2,500 Engineering 111,000 Number of change orders 6,000 Other overhead 380,000 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 $22,300 $17,100 $4,700 $0 Direct materials $7,000 $8,550 $13,500 $8,200 Direct labor cost $890 $950 $1,700 $140

Job 13-43 Job 13-44 Job 13-45 Job 13-46 Number of moves 43 54 25 7 Number of change orders 34 41 24 21 Direct labor hours 890 950 1,700 140

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 $ per change order Other overhead rate $ per direct labor hourPrepare 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".

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

4. Calculate the cost of goods sold for July

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

$

$

$

$