Question

Singh and Smythe is an architectural firm that provides services for residential construction projects. The following data pertain to a recent reporting period. (Round activity rate answers to 2 decimal places.) Activities Costs Design department Client consultation Drawings Modeling Project management department Supervision Billings Collections 1,800 contact hours 1,400 design hours 42,000 square feet $198,000 74,200 35,700 $216,000 8,900 16,200 1,200 days 1e jobs 10 jobs 1. Using ABC, compute the fim's activity overhead rates. Form activity cost pools where appropriate. Activity Rate Expected Costs 198.000 74200 35.700 Expected Activity Driver Activity 110.00 per contact hour 1800 Contact hours Client consultation 53.00 per design hour 1 400 Design hours Drawings 0.86 per square foot 42.000 Square feet 1200 Days 10 Jobs Modeling 180 00 per day S 216,000 Supervision 2.510.00 per job 25.100 Billings Collections 2. Assign costs to a 8,000 square foot job that requires 420 contact hours, 342 design hours, and 220 days to complete,

Answer 1

Solution 2:

Computation of overhead assigned to Job
Activity	Activity rate		Activity driver incurred	Overhead assigned
Client Consultation	$100.00	per contract hour	420	$42,000.00
Drawings	$53.00	per design hour	342	$18,126.00
Modeling	$0.85	per square feet	8000	$6,800.00
Supervision	$180.00	per day	220	$39,600.00
Billings / Collections	$2,510.00	per job	1	$2,510.00
Total				$109,036.00