Cardiff and Delp 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 2,100 contact hours $ 315,000
Drawings 1,800 design hours 104,400
Modeling 46,000 square feet 32,200
Project management department
Supervision 1,200 days $ 228,000
Billings 8 jobs 8,300
Collections 8 jobs 13,140
Required:
1.&2. Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Assign costs to a 8,800 square foot job that requires 520 contact hours, 350 design hours, and 180 days to complete.
Activity Expected Costs Expected Activity Driver Activity Rate Activity driver incurred Overhead assigned
Client consultation $315,000 2,100 Contact hours $150.00 per contact hour $78,000
Drawings 104,400 1,800 Design hours $58.00 per design hour 20,300
Modeling 32,200 46,000 Square feet $0.70 per square feet
Supervision 228,000 1,200 Days $190.00 per day
Billings/Collection 21,440 8 Jobs $2,680.00 per job
Total Overhead cost