CJR is an architectural firm that designs and builds buildings. It prices each job on a cost plus 20% basis. Overhead costs in 2020 are $8,550,000. CJR's simple costing system allocates overhead costs to its jobs based on number of jobs. There were three jobs in 2020. One customer, Santos, has complained that the cost and price of its building in Chicago was not competitive. As a result, the controller has initiated a detailed review of the overhead allocation to determine if overhead costs should be charged to jobs in proportion to consumption of overhead resources by jobs. She gathers the following information: (Click the icon to view the information.) Read the requirements Requirement 1. Compute the overhead allocated to each project in 2020 using the simple costing system that allocates overhead costs to jobs based on the number of jobs Determine the formula needed to calculate overhead using the simple costing method and then calculate the overhead rate for 2020. (Round your answer to the nearest dollar) Total overhead 8.550,000 Number of jobs 3 $ 2,850,000 Overhead cost per project per project Requirement 2. Compute the overhead allocated to each project in 2020 using department overhead cost rates. Determine the formule used to calculate the cost driver rates: Cost Total quantity of cost driver The 2020 department overhead cost rates by department are as follows: Department Design Engineering Construction Department Overhead Cost Rate (by Department) per design hour per engineering hour per labor hour Cost driver rate Data table Department Cost Driver Design Engineering Design department hours Number of engineering hours Construction Labor-hours Total Overhead Costs Quantity of Cost Drivers Used by Each Project in 2020 Santos Hathaway Jupiter $ 1,890,000 2,040 10,600 5,360 1,500,000 4,200 4,180 6,620 5,160,000 29,800 27,400 28,800 8,550,000 Print Done -X Requirements 1. Compute the overhead allocated to each project in 2020 using the simple costing system that allocates overhead costs to jobs based on the number of jobs. 2. Compute the overhead allocated to each project in 2020 using department overhead cost rates. 3. Do you think Santos had a valid reason for dissatisfaction with the cost and price of its building? How does the allocation based on department rates change costs for each project? 4. What value, if any, would CJR get by allocating costs of each department based on the activities done in that department? Print Done -X