unit for each product How might Sander'S managers use the new cost information from its activity-based 5-24 Department costing, service comp,ny. DLN is an architectural firm that designs and builds build- ings It prices each job on a plus basis. Overhead costs in 2017 are simple cost_ There were threejpbs in 2017. One customer. Chandler, has complained that the cost and price o Its building in Chicago was not CO1Petitive. As a result. the controller has initiated a detailed review of the overhead allocati0n to determine if Overhead costs should be charged to jobs in proportion to consumption of overhead resources bY jobS She gathers the following information: Quantity of Cost Drivers Used by Each Project Department Design Engineering Construction Cost Driver Design department hours Number of engineering hours Labor-hours Overhead Costs in 2017 Chandler 2,000 4,000 29,000 Henry 10,000 4,000 27,000 Manley 8,000 4,500 26,000 1. Compute the overhead allocated to each project in 2017 using the simple costing system that allocates overhead costs to jobs based on th m er o JO 2. Compute the overhead allocated to proJectln 17 using epartment overhead cost rat 3. Do you think Chandler had a valid reason for dissatisfactionwith cost an price of Its building? How does the allocation based on department rates change costs for each project? 4. Whatvalue, ifany, would DLN get by allocating costs of each department based on the activities done in that department?