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 Drawings Modeling Project management department Supervision Billings Collections 1,200 contact hours 1,800 design hours 41,000 square feet $144,000 99,000 28,700 600 days 10 jobs 10 jobs $132,000 8,500 19,500 Required: 1. & 2. Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Assign costs to a 7,000- square-foot job that requires 530 contact hours, 354 design hours, and 175 days to complete. (Round activity rate answers to 2 decimal places.) Activity Expected Costs Expected Activity Driver Activity Rate Activity Driver Incurred Overhead Assigned Client consultation Drawings Modeling Supervision Billings/Collection Total overhead cost Glassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same production line. For the current period, the company reports the following data. Direct materials Direct labor Overhead (300% of direct labor cost) Total cost Quantity produced Average cost per ft. (rounded) Rounded Edge $ 9,600 6,100 18,300 $ 34,000 10,600 ft. $ 3.21 Squared Edge Total $ 21,700 $ 31,300 11,900 18,000 35,700 54,000 $ 69,300 $ 103,300 14,200 ft. $ 4.88 Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $54,000 of overhead costs incurred by the two product lines to see whether cost per foot would change markedly from that reported above. She has collected the following information. Cost Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Total overhead $ 2,160 28,840 23,000 $ 54,000 She has also collected the following information about the cost drivers for each category (cost pool) and the amount of each driver used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.) Usage Overhead Cost Category (Activity Cost Pool) Supervision Driver Direct labor cost ($) Rounded Edge $6,100 Squared Edge $11,900 Total $18,000 Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Driver Direct labor cost ($) Machine hours Setups (number) Rounded Edge $6,100 200 hours 31 times Squared Edge $11,900 800 hours 94 times Total $18,000 1,000 hours 125 times Required: 1. Assign these three overhead cost pools to each of the two products using ABC. Activity Overhead Cost Activity Drivers Activity Rate Direct labor cost % Supervision Depreciation of machinery Assembly line preparation Machine hours Setups Rounded edge Activity rate Activity driver incurred Overhead assigned % Supervision Depreciation of machinery Assembly line preparation Squared edge Activity rate Activity driver incurred Overhead assigned % Components Supervision Depreciation of machinery Assembly line preparation Squared edge Activity rate Activity driver incurred Overhead assigned Components Supervision % Depreciation of machinery Assembly line preparation 2. Determine average cost per foot for each of the two products using ABC. Rounded edge Squared edge Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Indirect Materials Other Overhead Indirect Labor $350,000 $130,000 Production Activity Grinding Polishing Product modification Providing power System calibration 600,000 $ 205,000 420,000 Additional information on the drivers for its production activities follows. Grinding and Polishing Product modification Providing power System calibration 19,000 machine hours 1,600 engineering hours 18,000 direct labor hours 850 batches Job 4286 1,750 units 4,000 MH Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 140 units 400 MH eng. 33 hours 25 batches 430 DLH 28 eng. hours 75 batches 3,870 DLH Number of units Machine hours Engineering hours Batches Direct labor hours Job 3175 140 units 400 MH 33 eng hours 25 batches 430 DLH Job 4286 1,750 units 4,000 MH 28 eng. hours 75 batches 3,870 DLH Required: 1. Classify each activity as unit level, batch level, product level, or facility level. Grinding Polishing Product modification Providing power System calibration