1. ob Costs Using Activity-Based Costing

   Reider Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Reider identified three overhead activities and related drivers. Budgeted information for the year is as follows:

   Activity	Cost		Driver	Amount of Driver
   Materials handling	$47,000		Number of moves	2,000
   Engineering	136,000		Number of change orders	8,500
   Other overhead	229,500		Direct labor hours	45,000

   Reider worked on four jobs in July. Data are as follows:

   	Job 13-43	Job 13-44	Job 13-45	Job 13-46
   Beginning balance	$22,400	$19,600	$3,200	$0
   Direct materials	$5,800	$9,800	$11,400	$8,400
   Direct labor cost	$850	$1,060	$1,570	$140
   Number of moves	45	46	27	7
   Number of change orders	30	41	24	24
   Direct labor hours	850	1,060	1,570	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:

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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 9040da063077fdc_1 per move
   Engineering rate	$fill in the blank 9040da063077fdc_2 per change order
   Other overhead rate	$fill in the blank 9040da063077fdc_3 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.

   When required, round your answers to the nearest dollar. If an amount is zero, enter "0".

   Reider Company Job-Order Cost Sheets

   	Job 13-43	Job 13-44	Job 13-45	Job 13-46
   Balance, July 1	$fill in the blank ca84b2f9f05d04c_1	$fill in the blank ca84b2f9f05d04c_2	$fill in the blank ca84b2f9f05d04c_3	$fill in the blank ca84b2f9f05d04c_4
   Direct materials	fill in the blank ca84b2f9f05d04c_5	fill in the blank ca84b2f9f05d04c_6	fill in the blank ca84b2f9f05d04c_7	fill in the blank ca84b2f9f05d04c_8
   Direct labor cost	fill in the blank ca84b2f9f05d04c_9	fill in the blank ca84b2f9f05d04c_10	fill in the blank ca84b2f9f05d04c_11	fill in the blank ca84b2f9f05d04c_12
   Materials handling	fill in the blank ca84b2f9f05d04c_13	fill in the blank ca84b2f9f05d04c_14	fill in the blank ca84b2f9f05d04c_15	fill in the blank ca84b2f9f05d04c_16
   Engineering	fill in the blank ca84b2f9f05d04c_17	fill in the blank ca84b2f9f05d04c_18	fill in the blank ca84b2f9f05d04c_19	fill in the blank ca84b2f9f05d04c_20
   Other overhead	fill in the blank ca84b2f9f05d04c_21	fill in the blank ca84b2f9f05d04c_22	fill in the blank ca84b2f9f05d04c_23	fill in the blank ca84b2f9f05d04c_24
   Total	$fill in the blank ca84b2f9f05d04c_25	$fill in the blank ca84b2f9f05d04c_26	$fill in the blank ca84b2f9f05d04c_27	$fill in the blank ca84b2f9f05d04c_28

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   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.

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   3. Calculate the balance in Work in Process on July 31. $fill in the blank 384e62f8906e00b_1

   4. Calculate the cost of goods sold for July. $fill in the blank 384e62f8906e00b_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 384e62f8906e00b_3

   higherlowerno effectlower

   How would the cost of the other jobs be affected?

   higherlowerno effectno effect

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   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.

   See Example 5.3.

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   Partially correct

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