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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
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 | 1,200 | contact hours | $ | 240,000 | |
Drawings | 2,400 | design hours | 146,400 | ||
Modeling | 54,000 | square feet | 40,500 | ||
Project management department | |||||
Supervision | 1,200 | days | $ | 288,000 | |
Billings | 9 | jobs | 8,900 | ||
Collections | 9 | jobs | 17,920 | ||
Required: 1. & 2. Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Assign costs to a 9,000 square foot job that requires 460 contact hours, 350 design hours, and 160 days to complete. (Round activity rate answers to 2 decimal places.)
Activity Expected CostsExpected Activity Driver Activity Rate Client consultation Drawings Modeling Supervision Billings/Collection
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