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 $91,350 Number of moves 3,500 Engineering 120,900 Number of change orders 6,500 Other overhead 392,700 Direct labor hours 51,000 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 $23,000 $18,700 $4,700 $0 Direct materials $5,300 $9,350 $13,100 $9,900 Direct labor cost $970 $1,050 $1,520 $100 Job 13-43 Job 13-44 Job 13-45 Job 13-46 Number of moves 41 53 28 6 Number of change orders 30 44 24 15 Direct labor hours 970 1,050 1,520 100 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 6544bd090057023_1 per move Engineering rate $fill in the blank 6544bd090057023_2 per change order Other overhead rate $fill in the blank 6544bd090057023_3 per direct labor hour 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". 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 308f82057fdff96_1 $fill in the blank 308f82057fdff96_2 $fill in the blank 308f82057fdff96_3 $fill in the blank 308f82057fdff96_4 Direct materials fill in the blank 308f82057fdff96_5 fill in the blank 308f82057fdff96_6 fill in the blank 308f82057fdff96_7 fill in the blank 308f82057fdff96_8 Direct labor cost fill in the blank 308f82057fdff96_9 fill in the blank 308f82057fdff96_10 fill in the blank 308f82057fdff96_11 fill in the blank 308f82057fdff96_12 Materials handling fill in the blank 308f82057fdff96_13 fill in the blank 308f82057fdff96_14 fill in the blank 308f82057fdff96_15 fill in the blank 308f82057fdff96_16 Engineering fill in the blank 308f82057fdff96_17 fill in the blank 308f82057fdff96_18 fill in the blank 308f82057fdff96_19 fill in the blank 308f82057fdff96_20 Other overhead fill in the blank 308f82057fdff96_21 fill in the blank 308f82057fdff96_22 fill in the blank 308f82057fdff96_23 fill in the blank 308f82057fdff96_24 Total $fill in the blank 308f82057fdff96_25 $fill in the blank 308f82057fdff96_26 $fill in the blank 308f82057fdff96_27 $fill in the blank 308f82057fdff96_28 3. Calculate the balance in Work in Process on July 31. $fill in the blank 55736105f00f00f_1 4. Calculate the cost of goods sold for July. $fill in the blank 55736105f00f00f_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 55736105f00f00f_3 How would the cost of the other jobs be affected?

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 $91,350 Number of moves 3,500 Engineering 120,900 Number of change orders 6,500 Other overhead 392,700 Direct labor hours 51,000 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 $23,000 $18,700 $4,700 $0 Direct materials $5,300 $9,350 $13,100 $9,900 Direct labor cost $970 $1,050 $1,520 $100 Job 13-43 Job 13-44 Job 13-45 Job 13-46 Number of moves 41 53 28 6 Number of change orders 30 44 24 15 Direct labor hours 970 1,050 1,520 100 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 6544bd090057023_1 per move Engineering rate $fill in the blank 6544bd090057023_2 per change order Other overhead rate $fill in the blank 6544bd090057023_3 per direct labor hour 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". 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 308f82057fdff96_1 $fill in the blank 308f82057fdff96_2 $fill in the blank 308f82057fdff96_3 $fill in the blank 308f82057fdff96_4 Direct materials fill in the blank 308f82057fdff96_5 fill in the blank 308f82057fdff96_6 fill in the blank 308f82057fdff96_7 fill in the blank 308f82057fdff96_8 Direct labor cost fill in the blank 308f82057fdff96_9 fill in the blank 308f82057fdff96_10 fill in the blank 308f82057fdff96_11 fill in the blank 308f82057fdff96_12 Materials handling fill in the blank 308f82057fdff96_13 fill in the blank 308f82057fdff96_14 fill in the blank 308f82057fdff96_15 fill in the blank 308f82057fdff96_16 Engineering fill in the blank 308f82057fdff96_17 fill in the blank 308f82057fdff96_18 fill in the blank 308f82057fdff96_19 fill in the blank 308f82057fdff96_20 Other overhead fill in the blank 308f82057fdff96_21 fill in the blank 308f82057fdff96_22 fill in the blank 308f82057fdff96_23 fill in the blank 308f82057fdff96_24 Total $fill in the blank 308f82057fdff96_25 $fill in the blank 308f82057fdff96_26 $fill in the blank 308f82057fdff96_27 $fill in the blank 308f82057fdff96_28 3. Calculate the balance in Work in Process on July 31. $fill in the blank 55736105f00f00f_1 4. Calculate the cost of goods sold for July. $fill in the blank 55736105f00f00f_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 55736105f00f00f_3 How would the cost of the other jobs be affected?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 14P: Abbey Products Company is studying the results of applying factory overhead to production. The...

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Activity	Cost	Driver	Amount of Driver
Materials handling	$91,350	Number of moves	3,500
Engineering	120,900	Number of change orders	6,500
Other overhead	392,700	Direct labor hours	51,000

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	$23,000		$18,700		$4,700	$0
Direct materials	$5,300		$9,350		$13,100	$9,900
Direct labor cost	$970		$1,050		$1,520	$100

	Job 13-43	Job 13-44	Job 13-45	Job 13-46
Number of moves	41		53		28	6
Number of change orders	30		44		24	15
Direct labor hours	970		1,050		1,520	100

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 6544bd090057023_1 per move
Engineering rate	$fill in the blank 6544bd090057023_2 per change order
Other overhead rate	$fill in the blank 6544bd090057023_3 per direct labor hour

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".

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 308f82057fdff96_1	$fill in the blank 308f82057fdff96_2	$fill in the blank 308f82057fdff96_3	$fill in the blank 308f82057fdff96_4
Direct materials	fill in the blank 308f82057fdff96_5	fill in the blank 308f82057fdff96_6	fill in the blank 308f82057fdff96_7	fill in the blank 308f82057fdff96_8
Direct labor cost	fill in the blank 308f82057fdff96_9	fill in the blank 308f82057fdff96_10	fill in the blank 308f82057fdff96_11	fill in the blank 308f82057fdff96_12
Materials handling	fill in the blank 308f82057fdff96_13	fill in the blank 308f82057fdff96_14	fill in the blank 308f82057fdff96_15	fill in the blank 308f82057fdff96_16
Engineering	fill in the blank 308f82057fdff96_17	fill in the blank 308f82057fdff96_18	fill in the blank 308f82057fdff96_19	fill in the blank 308f82057fdff96_20
Other overhead	fill in the blank 308f82057fdff96_21	fill in the blank 308f82057fdff96_22	fill in the blank 308f82057fdff96_23	fill in the blank 308f82057fdff96_24
Total	$fill in the blank 308f82057fdff96_25	$fill in the blank 308f82057fdff96_26	$fill in the blank 308f82057fdff96_27	$fill in the blank 308f82057fdff96_28

3. Calculate the balance in Work in Process on July 31.
$fill in the blank 55736105f00f00f_1

4. Calculate the cost of goods sold for July.
$fill in the blank 55736105f00f00f_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 55736105f00f00f_3

How would the cost of the other jobs be affected?

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