Question

Exercise 17-16 Using ABC in a service company LO P3 Cardiff and Delp is an architectural firm that provides services for residential construction projects. The following data pertain to a recent reporting period. Activities Costs 1,980 contact hours 2,400 design hours 46,eee square feet $380,000 15e,eee 32,200 Design department client consultation Drawings Modeling Project management department Supervision Billings Collections 700 days 6 Jobs 6 jobs $161,000 9,700 5,540 Required: 1. & 2. Using ABC, compute the firm's activity overhead rates, Form activity cost pools where appropriate. Assign costs to a 6.800- square footjob that requires 550 contact hours, 356 design hours, and 200 days to complete (Round activity rate answers to 2 decimal places.) Activity Expected Costs Expected Activity Driver Activity Rate Activity Driver Incurred Overhead Assigned Cient consultation Drawings Modeling Supervision Billings Collection Total overhead cost

Answer 1

Activity Client Consultation Drawings Modelling Billings/Collection Expected Costs $ 380,000.00 $ 150,000.00 $ 32,200.00 $ 15,240.00 Expected Activity Driver 1900 Contact hours 2400 Design hours 46000 Square Feet 6 Jobs $ $ $ $ Activity Rate 200.00 Per Contact hour 62.50 Per Design hour 0.70 Per Square feet 2,540.00 Per Job Activity Driver Incurred 550 356 6800 1 Total Overhead Cost $ $ $ $ Overhead Assigned 110,000.00 22,250.00 4,760.00 2,540.00 $ 139,550.00