to the balance in Finished Goods? What would happen to the balance of Cost of Goodspayhe Job by JU30? What would happenSold?Cornerstone Exercise 5.3 Job Costs Using Activity-Based CostingHeitger Company is a job-order costing firm that uses activity-based costing to apply overheadto jobs. Heitger identified three overhead activities and related drivers. Budgeted informationfor the year is as follows:ActivityCostDriverAmount of DriverMaterials handlingEngineeringOther overhead$ 72,000165,000280,000Number of moves3,00010,000Number of change ordersDirect labor hours50,000Heitger worked on four jobs in July. Data are as follows:Job 13-43Job 13-44Job 13-45Job 13-46$ 2,300$12,700$32,000%24$9,800$2,400(continued)$Beginning balanceDirect materials$20,300$ 6,500$19,800$ 8,900$20,000$18,000Direct labor cost Frieling Company installs granite countertops in customers' homes. First, the customer choosesChapter 5 Product and Service Costing: Job-Order SystemJob 13-43.Job 13-44Job 13-45Job 13-46Number of moves445229Number of change orders30402020Direct labor hours9001,0001,600120By July 31, Jobs 13-43 and 13-44 were completed and sold. Jobs 13-45 and 13-46 were still inprocess.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 Job5.13-46? How would the cost of the other jobs be affected?Cornerstone Exercise 5.4 Cost of Normal SpoilageFrieling Company installs granite countertops in customers' homes. First, the customer choosesshe particular granite slab, and then Frienng measures the countertop area at the quetBJECTIVE 6ERSTONE 5.4ond ingtolla it

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...

See similar textbooks

Similar questions

Cynthia Rogers, the cost accountant for Sanford Manufacturing, is preparing a management report that must include an allocation of overhead. The budgeted overhead for each department and the data for one job are as follows: Using the departmental overhead application rates, and allocating overhead on the basis of direct labor hours, overhead applied to Job 231 in the Tooling Department would be: a. 44.00. b. 197.50. c. 241.50. d. 501.00.
Job order cost sheets show the following costs assigned to each job: The company assigns overhead at twice the direct labor cost. What is the total cost for each job?
Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base information are provided as follows: The estimated activity-base usage and unit information for two product lines was determined as follows: A. Determine the activity rate for each activity cost pool. B. Determine the activity-based cost per unit of each product.
Cost Flows Consider the following independent jobs. Overhead is applied in Department 1 at the rate of 6 per direct labor hour. Overhead is applied in Department 2 at the rate of 8 per machine hour. Direct labor wages average 10 per hour in each department. Required: Fill in the missing data for each job.
Job order cost sheets show the following costs assigned to each job: The company assigns overhead at $1.25 for each direct labor dollar spent. What is the total cost for each of the jobs?
Alvarez Manufacturing Inc. is a job shop. The management of Alvarez Manufacturing Inc. uses the cost information from the job sheets to assess cost performance. Information on the total cost, product type, and quantity of items produced is as follows: a. Develop a graph for each product (three graphs), with Job Number (in date order) on the horizontal axis and Unit Cost on the vertical axis. Use this information to determine Alvarez Manufacturing Inc.s cost performance over time for the three products. b. What additional information would you require in order to investigate Alvarez Manufacturing Inc.s cost performance more precisely?
Potterii sells its products to large box stores and recently added a retail line of products to sell directly to consumers. These estimates are to be used in determining the overhead allocation rate for ABC: What would be the predetermined rate for each cost pool?
Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?
/takeAssignment/takeAssignmentMain.do?invoker=Dassignments&takeAssignmentSessionLocator%3Dassignment-take&inprogress%-false ☆ ロ eBook 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 $110,700 Number of moves 4,500 Engineering 153,900 Number of change orders 9,000 Other overhead 310,000 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 $24,900 $19,800 $2,900 $0 Direct materials $5,800 $9,900 $13,200 $9,500 Direct labor cost $810 $1,080 $1,560 $130 Job 13-43 Job 13-44 Job 13-45 Job 13-46 Number of moves 45 48 33 4 Number of change orders 27 40 23 18 Direct labor hours 810 1,080 1,560 130 By July 31, Jobs 13-43 and 13-44 were completed…
The centrepiece of aiob-costing system is the 0a budgetewoverhead rate job-cost sheet 0 labour time ticket materials reguistion fom
True/false 1) Activity-based costing information is recorded on a job sheet each month which is later posted to the general ledger at the end of the year. ________ 2. A factory production manager’s salary is considered an organizational sustaining activity cost. ________ 3. First stage allocation is the process by which overhead costs are assigned to activity cost pools in an activity-based costing system. ________ 4. Interviewing operating-level managers is a poor way of determining cost pools in first-stage allocation. ________ 5. Production accountants applying activity rates to cost pools in activity-based costing will be able to calculate standard costs. ________ 6. The process of budgeting often takes place during the process of evaluation. ________ 7. Preparation of the cash budget often precedes the preparation of the sales budget. ________ 8. The self-imposed budget is the same as a top-down budget. ________ 9. The Chief Executive Officer of a corporation…
Allocating and adjusting manufacturing overhead Selected cost data for Classic Print Co. are as follows: Requirements Compute the predetermined overhead allocation rate per direct labor dollar. Prepare the journal entry to allocate overhead costs for the year. Use a T-account to determine the amount of underallocated or overallocated manufacturing overhead. Prepare the journal entry to adjust for the underallocated or overallocated manufacturing overhead.