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 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 Number of change orders 40 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. 1. Calculate the activity rates for each of the three overhead activities. Round all activity rates to the nearest cent. Materials handling rate X per move Engineering rate X per change order Other overhead rate X per direct labor hour Feedback Check My Work 1. In job-order costing, departmental overhead rates and activity-based costing affect only the application of overhead and is put on the job-order costing and must include all drivers for which overhead is applied 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 $ X Job 13-44 $ X Job 13-45 $ Balance, July 1 9.900 Direct materials Direct labor cost Materials handling 1,133 1,326 X 349 Engineering 647 5,586 X x 8,550 5,415 Other overhead X $26,543 $ 11, $34,613 x $37,339 x Previous Total I LOL, and all overhead costs associated 3. Calculate the balance in Work in Process on July 31. $ 37,650 X 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 13.467 How would the cost of the other jobs be affected? Feedback Check My Work 3. The balance in Work in Process can be computed by summing the costs of all incomplete Jobs. 4. Cost of Goods Sold must be the total cost of all jobs sold during the month. 5. See Cornerstone 5.3. Previous