Question

299-830c-13050501042c/question/4 lass Question 5 of 6 - / 1 Spin Cycle Architecture uses three activity pools to apply overhead to its projects. Each activity has a cost driver used to allocate the overhead costs to the projects. The activities and related overhead costs are as follows: initial concept formation $40,000; design $300,000; and construction oversight $100,000. The cost drivers and estimated use are as follows. Estimated Use of Cost Activities Cost Drivers Drivers per Activity Initial concept formation Number of project changes 20 Design Square feet 150,000 Construction oversight Number of months 100 (a) Compute the predetermined overhead rate for each activity. Overhead Rate Initial concept formation $ per project change Design $ per square foot Construction oversight Per month $ (b) Classify each of these activities as unit-level, batch-level, product-level, or facility-level. Level Activities Initial concept formation Design Co search

Answer 1

of foredekronined overhead role a computation of bred eksmined of each activity Aclisty total costs) cost driver Orehead rate Overhead Cog Driver for adusty (a lb) No of Intial concept formahon 410,000 20 2000 project changes per project Chang (2) Design. 2 per olquare feet soopoo 150,000 Square feet (3) No of 100000 Construction Oversigt 100 1000 per month. months (b) Classification of these activities an cent a lesel, batch level, product deve er facility level Acticines level, Intial concept unit odvel formakon y unito level acliuity occur every time a service is performe or product is made Design facility level, facility support activity are necessary for development and Production to take place, (3) Construct oversight batch level. time a Balch-level activity are are cost incurred every unit is produced or series of skips Reyermed group of