PricewaterhouseCoopers LLP provides consulting services using job costing. In October 2032, the company undertakes three projects with the following costs:

• Project X: Direct labor $1,000,000, Direct materials $500,000, Overhead $300,000
• Project Y: Direct labor $1,200,000, Direct materials $600,000, Overhead $350,000
• Project Z: Direct labor $1,100,000, Direct materials $550,000, Overhead $325,000

Additional information:

• Overhead is allocated based on activity-based costing with the following cost drivers:
  • Project support: 40%, Client meetings: 30%, Research: 30%

Required:

• Calculate the total cost per project using activity-based costing.
• Allocate overhead costs to each project based on the activity-based costing method.
• Analyze the cost structure and profitability of each project.
• Discuss the advantages of using activity-based costing in job costing.
• Prepare a job costing statement for PricewaterhouseCoopers LLP.