Zayner Company is a job-order costing firm that use activity based costing to apply overhead to jobs. Zayner identified three overhead activities and their related drivers. Budgeted information for the year is as follows: Zayner Company is a job order costing company that uses activity-based costing (ABC) to apply manufacturing overhead to different jobs. Zayner identified three activities and the related cost drivers. The budgeted information (budget) for the year is as follows:

Activity Cost Driver Amount of Driver

Engineering design $ 120,000 Engineering Hours 3,000 hrs Purchasing 80,000 Number of parts 10,000 parts Other overhead 250,000 Direct labor hours 40,000 hours

Zayner worked on five jobs in July. Data are as follows:

Job # 60 Job # 61 Job # 62 Job # 63 Job # 64

Balance, 7/1 $ 32,450 $ 40,770 $ 29,090 $ 0 $ 0 Direct materials $ 26,000 $ 37,900 $ 25,350 $ 11,000 $ 13,560 Direct labor $ 40,000 $ 38,500 $ 43,000 $ 20,900 $ 18,000 Engineering hours 20 10 15 100 200 Number of parts 150 180 200 500 300 Direct labor hours 2,500 2,400 2,600 1,200 1,100

As of July 31, jobs 60 and 62 were completed and sold. The remaining jobs remain in process.

Required:

1. Calculate the activity rates for each of the three manufacturing overheads. 2. Prepare job order cost sheets for each job that show all costs through July 31. 3. What is the cost of each job at the end of July?