Case Construction Company, a three-year-old business, provides contracting and construction services to a variety of clients. Given that each construction job is different from any other, company accountant Susan Kalagnanam decided that it was best to use a job-order costing system to allocate costs to the different jobs. She decided to use construction labour-hours as the basis for overhead allocation. In December 2020, she estimated the following amounts for the year 2021:

Direct materials	$	14,268,800
Construction labour		9,065,000
Overhead		10,712,200
Construction labour-hours		490,000

Kalagnanam recorded the following for the first quarter of 2021 for the three jobs that the company started and completed during the quarter:

	School			Residential			Cinema
Direct materials	$	802,625		$	963,150		$	1,444,725
Construction labour-hours		66,150			39,200			17,100

Required:

1. Compute the cost of each job using the current system of cost allocation. (Round intermediate calculations to 2 decimal places.)

2. Tyler Case, the companys CEO, recently returned from a seminar on activity-based costing and instructed Kalagnanam to consider implementing the new system. As a first step, he instructed her to analyze the overhead costs for 2021. Through her research she was able to derive the following breakdown of the estimated overhead costs for 2021:

Activity	Amount			Activity Measure	Activity Volume
Foundation laying	$	2,683,200		Foundation-laying hours		412,800
Building construction		2,695,000		Construction labour-hours		490,000
Painting		2,835,000		Painting-hours		540,000
Finishing		2,499,000		Finishing-hours		735,000

She also documented the following activity on the three jobs during the first quarter of 2021 (in addition to the construction labour-hours consumed by the three jobs):

	Schfool	Residential	Cinema
Foundation-laying hours	52,830	51,180	61,000
Painting-hours	71,280	44,500	62,300
Finishing-hours	38,220	57,330	95,550

a. Calculate the activity rates for each of the four activities. (Round your answers to 2 decimal places.)

b. Calculate the total cost of each job using activity-based costing. (Do not round intermediate calculations and round your final answers nearest to whole number.)

3. This part of the question is not part of your Connect assignment.

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