ABC Scenario in Project Management

An architectural firm specializes in sustainable building designs and has recently adopted Activity Based Costing $($ABC$)$ to improve its project management and cost tracking. The firm is currently working on three projects:

$1.$ Green Residential Complex $($GRC$)$: A residential project focusing on ecofriendly materials and energy efficiency.

$2.$ Innovative Commercial Hub $($ICH$)$: A commercial project aimed at innovative design and smart building technologies.

$3.$ Community Recreational Center $($CRC$)$: A public project with a focus on community engagement and sustainable landscapes.

The firm has identified three main activities with associated costs and cost drivers for the month:

Activity $1$: Design Development

Cost: $$30,000$

Cost Driver: Number of design hours

Activity $2$: Client Meetings

Cost: $$15,000$

Cost Driver: Number of meetings

Activity $3$: Site Supervision

Cost: $$20,000$

Cost Driver: Square footage under supervision

Project Data for the Month:

GRC:

Design hours: $200$

Meetings: $20$

Square footage: $10,000$

ICH:

Design hours: $300$

Meetings: $30$

Square footage: $15,000$

CRC:

Design hours: $100$

Meetings: $10$

Square footage: $5,000$

Total Costs for the Month: $$65,000$

Questions

$1.$ Compute the cost per activity

$2.$ What is the total cost

$3.$ Compute the profitability