Question

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
Design department
Client consultation	1,500	contact hours	$	270,000
Drawings	2,200	design hours		129,800
Modeling	43,000	square feet		30,100
Project management department
Supervision	1,200	days	$	264,000
Billings	8	jobs		10,000
Collections	8	jobs		12,160

Required:
1. & 2. Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Assign costs to a 8,000-square-foot job that requires 420 contact hours, 352 design hours, and 140 days to complete. (Round activity rate answers to 2 decimal places.)

Answer 1

Activity	Expected Costs	Expected Activity Driver		Activity Rate		Activity driver incurred	Overhead assigned
Client consultation	270000	1500	Contact hours	180.00	per contact hour	420	75600
Drawings	129800	2200	Design hours	59.00	per design hour	352	20768
Modeling	30100	43000	Square feet	0.70	per square feet	8000	5600
Supervision	264000	1200	Days	220.00	per day	140	30800
Billings/Collection	22160	8	Jobs	2770.00	per job	1	2770
						Total Overhead cost	135538