Miami Valley Architects Inc. provides a wide range of engineering and architectural consulting

services through its three offices in Columbus, Cincinnati, and Dayton, Ohio. The company

allocates resources and bonuses to the three offices based on the net income reported for the

period by each office. Presented below are the results for the 2019 fiscal year ($ in thousands)

as originally calculated.

Columbus Cincinnati Dayton Total Sales $1,500 $1,419 $1,067 $3,986 Less: Direct labor (382) (317) (317) (1,016) Direct materials (281) (421) (185) ( 887) Overhead (710) (589 (589 (1,888) Net Income $127 $92 ($24) $195Columbus Cincinnati Dayton Total Directly Traceable Costs $180 $270 $177 $627# Activities by Location Activity Pools Cost Activity Driver Columbus Cincinnati Dayton General $409,000 Direct Labor $382,413 $317,086 $317, 188 Administration Dollars Project Costing $48,000 # of Timesheet 6,000 3,800 3,500 Entries Accounts $139,000 # of Vendor 1,020 850 400 Payable/Receiving Invoices Accounts Receivable $47,000 # of Client 588 444 96 Invoices Payroll/Mail Sort & $30,000 # of Employees 23 26 18 Delivery Personnel Recruiting $38,000 # of New Hires 8 4 7 Employee Insurance $14,000 # of Claims 230 260 180 Processing Filed Proposals Accepted $139,000 # of Proposals 200 250 60 by Clients Accepted Sales Meeting & $202,000 Contracted $1,824,439 1,399,617 $571,208 Sales Aids Sales Shipping $24,000 # of Projects 99 124 30 Ordering $48,000 # of Purchase 135 110 80 Orders Duplicating Costs $46,000 # of Copies 162,500 146,250 65,000 Duplicated Blueprinting $77,000 # of Blueprints 39,000 31,200 16,000 $1,261,000