ob 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	$117,500		Number of moves	5,000
Engineering	128,000		Number of change orders	8,000
Other overhead	265,200		Direct labor hours	52,000

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	$24,400		$17,900		$2,500		$0
Direct materials	$6,800		$8,950		$12,000		$9,900
Direct labor cost	$970		$1,030		$1,570		$130

	Job 13-43		Job 13-44		Job 13-45		Job 13-46
Number of moves	41		46		35		6
Number of change orders	33		43		15		23
Direct labor hours	970		1,030		1,570		130

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 hour

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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 sheet and must include all drivers for which overhead is applied.

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2. Prepare job-order cost sheets for each job showing all costs through July 31.