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 $ 72,000 Number of moves 3,000 Engineering 165,000 Number of change orders 10,000 Other overhead 280,000 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 Beginning balance $20,300 $19,800 $2,300 $0 Direct materials $6,500 $8,900 $12,700 $9,800 Direct labor cost $18,000 $20,000 $32,000 $2,400 Job 13-43 Job 13-44 Job 13-45 Job 13-46 Number of moves 44 52 29 5 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. Round all activity rates to the nearest cent. Materials handling rate $fill in the blank 00c978fe4fcc055_1 per move Engineering rate $fill in the blank 00c978fe4fcc055_2 per change order Other overhead rate $fill in the blank 00c978fe4fcc055_3 per direct labor hour 2. Prepare job-order cost sheets for each job showing all costs through July 31. If an amount is zero, enter "0". Heitger Company Job-Order Cost Sheets Job 13-43 Job 13-44 Job 13-45 Job 13-46 Balance, July 1 $fill in the blank d3b958018ffd06d_1 $fill in the blank d3b958018ffd06d_2 $fill in the blank d3b958018ffd06d_3 $fill in the blank d3b958018ffd06d_4 Direct materials fill in the blank d3b958018ffd06d_5 fill in the blank d3b958018ffd06d_6 fill in the blank d3b958018ffd06d_7 fill in the blank d3b958018ffd06d_8 Direct labor cost fill in the blank d3b958018ffd06d_9 fill in the blank d3b958018ffd06d_10 fill in the blank d3b958018ffd06d_11 fill in the blank d3b958018ffd06d_12 Materials handling fill in the blank d3b958018ffd06d_13 fill in the blank d3b958018ffd06d_14 fill in the blank d3b958018ffd06d_15 fill in the blank d3b958018ffd06d_16 Engineering fill in the blank d3b958018ffd06d_17 fill in the blank d3b958018ffd06d_18 fill in the blank d3b958018ffd06d_19 fill in the blank d3b958018ffd06d_20 Other overhead fill in the blank d3b958018ffd06d_21 fill in the blank d3b958018ffd06d_22 fill in the blank d3b958018ffd06d_23 fill in the blank d3b958018ffd06d_24 Total $fill in the blank d3b958018ffd06d_25 $fill in the blank d3b958018ffd06d_26 $fill in the blank d3b958018ffd06d_27 $fill in the blank d3b958018ffd06d_28 3. Calculate the balance in Work in Process on July 31. $fill in the blank 47191cfd4034f83_1 4. Calculate the cost of goods sold for July. $fill in the blank 47191cfd4034f83_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 47191cfd4034f83_3 How would the cost of the other jobs be affected?

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 $ 72,000 Number of moves 3,000 Engineering 165,000 Number of change orders 10,000 Other overhead 280,000 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 Beginning balance $20,300 $19,800 $2,300 $0 Direct materials $6,500 $8,900 $12,700 $9,800 Direct labor cost $18,000 $20,000 $32,000 $2,400 Job 13-43 Job 13-44 Job 13-45 Job 13-46 Number of moves 44 52 29 5 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. Round all activity rates to the nearest cent. Materials handling rate $fill in the blank 00c978fe4fcc055_1 per move Engineering rate $fill in the blank 00c978fe4fcc055_2 per change order Other overhead rate $fill in the blank 00c978fe4fcc055_3 per direct labor hour 2. Prepare job-order cost sheets for each job showing all costs through July 31. If an amount is zero, enter "0". Heitger Company Job-Order Cost Sheets Job 13-43 Job 13-44 Job 13-45 Job 13-46 Balance, July 1 $fill in the blank d3b958018ffd06d_1 $fill in the blank d3b958018ffd06d_2 $fill in the blank d3b958018ffd06d_3 $fill in the blank d3b958018ffd06d_4 Direct materials fill in the blank d3b958018ffd06d_5 fill in the blank d3b958018ffd06d_6 fill in the blank d3b958018ffd06d_7 fill in the blank d3b958018ffd06d_8 Direct labor cost fill in the blank d3b958018ffd06d_9 fill in the blank d3b958018ffd06d_10 fill in the blank d3b958018ffd06d_11 fill in the blank d3b958018ffd06d_12 Materials handling fill in the blank d3b958018ffd06d_13 fill in the blank d3b958018ffd06d_14 fill in the blank d3b958018ffd06d_15 fill in the blank d3b958018ffd06d_16 Engineering fill in the blank d3b958018ffd06d_17 fill in the blank d3b958018ffd06d_18 fill in the blank d3b958018ffd06d_19 fill in the blank d3b958018ffd06d_20 Other overhead fill in the blank d3b958018ffd06d_21 fill in the blank d3b958018ffd06d_22 fill in the blank d3b958018ffd06d_23 fill in the blank d3b958018ffd06d_24 Total $fill in the blank d3b958018ffd06d_25 $fill in the blank d3b958018ffd06d_26 $fill in the blank d3b958018ffd06d_27 $fill in the blank d3b958018ffd06d_28 3. Calculate the balance in Work in Process on July 31. $fill in the blank 47191cfd4034f83_1 4. Calculate the cost of goods sold for July. $fill in the blank 47191cfd4034f83_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 47191cfd4034f83_3 How would the cost of the other jobs be affected?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter5: Product And Service Costing: Job-order System

Section: Chapter Questions

Problem 27P: Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming...

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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	$ 72,000	Number of moves	3,000
Engineering	165,000	Number of change orders	10,000
Other overhead	280,000	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
Beginning balance	$20,300	$19,800	$2,300	$0
Direct materials	$6,500	$8,900	$12,700	$9,800
Direct labor cost	$18,000	$20,000	$32,000	$2,400

	Job 13-43	Job 13-44	Job 13-45	Job 13-46
Number of moves	44	52	29	5
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. Round all activity rates to the nearest cent.

Materials handling rate	$fill in the blank 00c978fe4fcc055_1 per move
Engineering rate	$fill in the blank 00c978fe4fcc055_2 per change order
Other overhead rate	$fill in the blank 00c978fe4fcc055_3 per direct labor hour

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

If an amount is zero, enter "0".

Heitger Company
Job-Order Cost Sheets

	Job 13-43	Job 13-44	Job 13-45	Job 13-46
Balance, July 1	$fill in the blank d3b958018ffd06d_1	$fill in the blank d3b958018ffd06d_2	$fill in the blank d3b958018ffd06d_3	$fill in the blank d3b958018ffd06d_4
Direct materials	fill in the blank d3b958018ffd06d_5	fill in the blank d3b958018ffd06d_6	fill in the blank d3b958018ffd06d_7	fill in the blank d3b958018ffd06d_8
Direct labor cost	fill in the blank d3b958018ffd06d_9	fill in the blank d3b958018ffd06d_10	fill in the blank d3b958018ffd06d_11	fill in the blank d3b958018ffd06d_12
Materials handling	fill in the blank d3b958018ffd06d_13	fill in the blank d3b958018ffd06d_14	fill in the blank d3b958018ffd06d_15	fill in the blank d3b958018ffd06d_16
Engineering	fill in the blank d3b958018ffd06d_17	fill in the blank d3b958018ffd06d_18	fill in the blank d3b958018ffd06d_19	fill in the blank d3b958018ffd06d_20
Other overhead	fill in the blank d3b958018ffd06d_21	fill in the blank d3b958018ffd06d_22	fill in the blank d3b958018ffd06d_23	fill in the blank d3b958018ffd06d_24
Total	$fill in the blank d3b958018ffd06d_25	$fill in the blank d3b958018ffd06d_26	$fill in the blank d3b958018ffd06d_27	$fill in the blank d3b958018ffd06d_28

3. Calculate the balance in Work in Process on July 31.
$fill in the blank 47191cfd4034f83_1

4. Calculate the cost of goods sold for July.
$fill in the blank 47191cfd4034f83_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 47191cfd4034f83_3

How would the cost of the other jobs be affected?

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