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 $88,800 Number of moves 4,000 Engineering 117,600 Number of change orders 8,000 Other overhead 174,800 Direct labor hours 46,000 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 $23,400 $19,200 $4,700 $0 Direct materials $5,800 $9,600 $13,400 $10,100 Direct labor cost $950 $1,010 $1,590 $110 Job 13-43 Job 13-44 Job 13-45 Job 13-46 Number of moves 46 46 33 6 Number of change orders 35 37 17 23 Direct labor hours 950 1,010 1,590 110 By July 31, Jobs 13-43 and 13-44 were completed and sold. Jobs 13-45 and 13-46 were still in process.
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 $88,800 Number of moves 4,000 Engineering 117,600 Number of change orders 8,000 Other overhead 174,800 Direct labor hours 46,000 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 $23,400 $19,200 $4,700 $0 Direct materials $5,800 $9,600 $13,400 $10,100 Direct labor cost $950 $1,010 $1,590 $110 Job 13-43 Job 13-44 Job 13-45 Job 13-46 Number of moves 46 46 33 6 Number of change orders 35 37 17 23 Direct labor hours 950 1,010 1,590 110 By July 31, Jobs 13-43 and 13-44 were completed and sold. Jobs 13-45 and 13-46 were still in process.
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 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...
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