Heitger Company is a job-order costing firm that uses activity-based costing to apply overhea to jobs. Heitger identified three overhead activities and related drivers. Budgeted informatic for the year is as follows: Activity Cost Driver Amount of Driver Materials handling Engineering Other overhead $ 72,000 165,000 280,000 3,000 10,000 50,000 Number of moves Number of change orders Direct labor hours Heitger worked on four jobs in July. Data are as follows: Job 13-43 Job 13-44 Job 13-45 Job 13-46 $ 2,300 $12,700 $32,000 24 Beginning balance Direct materials $20,300 $ 6,500 $18,000 $19,800 $ 8,900 $20,000 $9,800 $2,400 (continuec Direct labor cost
Heitger Company is a job-order costing firm that uses activity-based costing to apply overhea to jobs. Heitger identified three overhead activities and related drivers. Budgeted informatic for the year is as follows: Activity Cost Driver Amount of Driver Materials handling Engineering Other overhead $ 72,000 165,000 280,000 3,000 10,000 50,000 Number of moves Number of change orders Direct labor hours Heitger worked on four jobs in July. Data are as follows: Job 13-43 Job 13-44 Job 13-45 Job 13-46 $ 2,300 $12,700 $32,000 24 Beginning balance Direct materials $20,300 $ 6,500 $18,000 $19,800 $ 8,900 $20,000 $9,800 $2,400 (continuec Direct labor cost
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 4CMA: Cynthia Rogers, the cost accountant for Sanford Manufacturing, is preparing a management report that...
Related questions
Question
![to the balance in Finished Goods? What would happen to the balance of Cost of Goods
pay
he Job by JU
30? What would happen
Sold?
Cornerstone Exercise 5.3 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
Engineering
Other overhead
$ 72,000
165,000
280,000
Number of moves
3,000
10,000
Number of change orders
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
$ 2,300
$12,700
$32,000
%24
$9,800
$2,400
(continued)
$
Beginning balance
Direct materials
$20,300
$ 6,500
$19,800
$ 8,900
$20,000
$18,000
Direct labor cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d930ddb-c122-4503-a581-50f33486a5ab%2F0a5ac1d4-9797-4451-8411-b80c404b7cea%2F5vhoa5j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:to the balance in Finished Goods? What would happen to the balance of Cost of Goods
pay
he Job by JU
30? What would happen
Sold?
Cornerstone Exercise 5.3 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
Engineering
Other overhead
$ 72,000
165,000
280,000
Number of moves
3,000
10,000
Number of change orders
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
$ 2,300
$12,700
$32,000
%24
$9,800
$2,400
(continued)
$
Beginning balance
Direct materials
$20,300
$ 6,500
$19,800
$ 8,900
$20,000
$18,000
Direct labor cost
![Frieling Company installs granite countertops in customers' homes. First, the customer chooses
Chapter 5 Product and Service Costing: Job-Order System
Job 13-43.
Job 13-44
Job 13-45
Job 13-46
Number of moves
44
52
29
Number of change orders
30
40
20
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.
2. Prepare job-order cost sheets for each job showing all costs through July 31.
3.
Calculate the balance in Work in Process on July 31.
4. Calculate the cost of goods sold for July.
What if Job 13-46 required no engineering change orders? What is the new cost of Job
5.
13-46? How would the cost of the other jobs be affected?
Cornerstone Exercise 5.4 Cost of Normal Spoilage
Frieling Company installs granite countertops in customers' homes. First, the customer chooses
she particular granite slab, and then Frienng measures the countertop area at the quet
BJECTIVE 6
ERSTONE 5.4
ond ingtolla it](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d930ddb-c122-4503-a581-50f33486a5ab%2F0a5ac1d4-9797-4451-8411-b80c404b7cea%2F619a5y7s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Frieling Company installs granite countertops in customers' homes. First, the customer chooses
Chapter 5 Product and Service Costing: Job-Order System
Job 13-43.
Job 13-44
Job 13-45
Job 13-46
Number of moves
44
52
29
Number of change orders
30
40
20
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.
2. Prepare job-order cost sheets for each job showing all costs through July 31.
3.
Calculate the balance in Work in Process on July 31.
4. Calculate the cost of goods sold for July.
What if Job 13-46 required no engineering change orders? What is the new cost of Job
5.
13-46? How would the cost of the other jobs be affected?
Cornerstone Exercise 5.4 Cost of Normal Spoilage
Frieling Company installs granite countertops in customers' homes. First, the customer chooses
she particular granite slab, and then Frienng measures the countertop area at the quet
BJECTIVE 6
ERSTONE 5.4
ond ingtolla it
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