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Exercise 17-13 Using ABC in a service company LO P3 Cardiff and Delp is an architectural firm that provides services for residential construction projects. The
Exercise 17-13 Using ABC in a service company LO P3 Cardiff and Delp is an architectural firm that provides services for residential construction projects. The following data pertain to a recent reporting period. (Round activity rate answers to 2 decimal places.) Activities Costs Design department Client consultation Drawings Modeling Project management department Supervision Billings Collections 1,500 contact hours 2,000 design hours 47,000 square feet $ 210,000 106,000 37,600 900 days 11 jobs 11 jobs $ 180,000 9,300 19,630 Required: 1.&2.Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Assign costs to a 8,800 square foot job that requires 550 contact hours, 348 design hours, and 195 days to complete. Activity Expected Costs Expected Activity Driver Activity Rate Activity driver incurred Overhead assigned Client consultation Drawings Modeling Supervision Billings/Collection Total Overhead cost
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