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	$89,600		Number of moves	4,000
Engineering	149,000		Number of change orders	10,000
Other overhead	196,000		Direct labor hours	49,000

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	$24,200		$18,100		$2,700		$0
Direct materials	$6,800		$9,050		$13,600		$10,300
Direct labor cost	$890		$1,050		$1,670		$100

	Job 13-43	Job 13-44	Job 13-45	Job 13-46
Number of moves	41		55		30		8
Number of change orders	30		39		22		21
Direct labor hours	890		1,050		1,670		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:

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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 343ba4f6805d047_1 per move
Engineering rate	$fill in the blank 343ba4f6805d047_2 per change order
Other overhead rate	$fill in the blank 343ba4f6805d047_3 per direct labor hour

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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".

	Job 13-43	Job 13-44	Job 13-45	Job 13-46
Balance, July 1	$fill in the blank 741440fc7fd101e_1	$fill in the blank 741440fc7fd101e_2	$fill in the blank 741440fc7fd101e_3	$fill in the blank 741440fc7fd101e_4
Direct materials	fill in the blank 741440fc7fd101e_5	fill in the blank 741440fc7fd101e_6	fill in the blank 741440fc7fd101e_7	fill in the blank 741440fc7fd101e_8
Direct labor cost	fill in the blank 741440fc7fd101e_9	fill in the blank 741440fc7fd101e_10	fill in the blank 741440fc7fd101e_11	fill in the blank 741440fc7fd101e_12
Materials handling	fill in the blank 741440fc7fd101e_13	fill in the blank 741440fc7fd101e_14	fill in the blank 741440fc7fd101e_15	fill in the blank 741440fc7fd101e_16
Engineering	fill in the blank 741440fc7fd101e_17	fill in the blank 741440fc7fd101e_18	fill in the blank 741440fc7fd101e_19	fill in the blank 741440fc7fd101e_20
Other overhead	fill in the blank 741440fc7fd101e_21	fill in the blank 741440fc7fd101e_22	fill in the blank 741440fc7fd101e_23	fill in the blank 741440fc7fd101e_24
Total	$fill in the blank 741440fc7fd101e_25	$fill in the blank 741440fc7fd101e_26	$fill in the blank 741440fc7fd101e_27	$fill in the blank 741440fc7fd101e_28

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3. Calculate the balance in Work in Process on July 31. $fill in the blank 10c9d3078fbb03d_1

4. Calculate the cost of goods sold for July. $fill in the blank 10c9d3078fbb03d_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 10c9d3078fbb03d_3

higherlowerno effect

How would the cost of the other jobs be affected?