Type I. Zayner Company is a job-order costing firm that use activity based costi

ID: 2369615 • Letter: T

Question

Type

I. Zayner Company is a job-order costing firm that use activity based costing to apply overhead to jobs. Zayner identified three overhead activities and their related drivers. Budgeted information for the year is as follows:<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Activity Cost Driver Amount of Driver

Engineering design $120,000 Engineering Hours 3,000 hrs

Purchasing 80,000 Number of parts 10,000 parts

Other overhead 250,000 Direct labor hours 40,000 hours

Zayner worked on five jobs in July. Data are as follows:

Job #60 Job # 61 Job # 62 Job # 63 Job # 64

Balance, 7/1 $32,450 $40,770 $29,090 $0 $0

Direct materials $26,000 $37,900 $25,350 $11,000 $13,560

Direct labor $40,000 $38,500 $43,000 $20,900 $18,000

Engineering hours 20 10 15 100 200

Number of parts 150 180 200 500 300

Direct labor hours 2,500 2,400 2,600 1,200 1,100

By July 31, Jobs #60, and # 62 were completed and sold. The remaining jobs were 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. What is the cost of each job by the end of July?