Required information [The following information applies to the questions displayed below] Miami Valley Architects Inc. provides a wide range of engineering and architectural consulting services through its three branch offices in Columbus, Cincinnati, and Dayton, Ohio. The company allocates resources and bonuses to the three branches based on the net income of the period. The results of the firm's performance for the most recent year follows ($ in thousands) Sales Lens: Direct labor Columbus $1,500 Cincinnati $1,419 Dayton $ 1,067 Total $ 3,996 382 317 317 1,016 Direct materials Overhead 201 421 105 07 710 589 589 1,888 Net income 127 $92 (24) $195 Miami Valley accumulates overhead items in one overhead pool and allocates it to the branches based on direct labor dollars. For this year, the predetermined overhead rate was $1.859 for every direct labor dollar incurred by an office. The overhead pool includes rent, depreciation, and taxes, regardless of which office incurred the expense. Some branch managers complain that the overhead allocation method forces them to absorb a portion of the overhead incurred by the other offices. Management is concerned with the recent operating results. During a review of overhead expenses, management noticed that many overhead items were clearly not correlated to the movement in direct labor dollars as previously assumed. Management decided that applying overhead based on activity-based costing and direct tracing wherever possible should provide a more accurate picture of the profitability of each branch. An analysis of the overhead revealed that the following dollars for rent, utilities, depreciation, and taxes could be traced directly to the office that incurred the overhead ($ in thousands) Direct overhead Columbus 180 Cincinnati 5270 Dayton $377 Total 627 Activity pools and their corresponding cost drivers were determined from the accounting records and staff surveys as follows: General administration $409,000 Project coating 40,000 Accounts payable/receiving 139,000 Accousta receivable 47,000 Payroll/Hail sort and delivery 30,000 Personnel recruiting 38,000 Employee Insurance processing 14,000 139,000 Sales meetings/sales aide 302,000 shipping Ordering Duplicating Stueprinting 24,000 48,000 46.000 27,000 1,261,000 Amount of Coat Driver Bee by Location Cost Driver Direes labor cost Timesheet antries Vendor invoices Columbus 382,413 6.000 1.620 Cincinnati 317,006 450 Daysan. 317,189 Cliest invoices 3,500 400 Sev kires 4 wists filed 330 300 Contracted salas 100 40 571.200 Projects shipped Purchase arder 335 110 Copies duplicated Manprints 142,500 144,250 39,000 31,200 65,000 16,000 Required: 1. What overhead costs should be assigned to each branch based on ABC concepts? 2. What is the contribution of each branch before subtracting the results obtained in requirement 1? 3. What is the profitability of each branch office using ABC? Required: 1. What overhead costs should be assigned to each branch based on ABC concepts? 2. What is the contribution of each branch before subtracting the results obtained in requirement 1? 3. What is the profitability of each branch office using ABC? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What overhead costs should be assigned to each branch based on ABC concepts? (Do not round intermediate calculations. Enter your answers in thousands of dollars, rounded to two decimal places.), General administration Project costing Accounts payable/receiving Accounts receivable Payrol Mail sort and delivery Personnel recruiting Employee insurance processing Proposals Sales meetings/Sales aids Shipping Ordering Duplicating costs Blueprinting Total Activity-based Overhead Allocation (in thousands) Cost Driver Direct labor cost Timesheet entries Vendor Invoices Client invoices Employees New hires Insurance claims filed Proposals Contracted sales Projects shipped Purchase orders Copies duplicated Blueprints Columbus Cincinnati Dayton Total S 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 Required 2 > Required: 1. What overhead costs should be assigned to each branch based on ABC concepts? 2. What is the contribution of each branch before subtracting the results obtained in requirement 1? 3. What is the profitability of each branch office using ABC? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the contribution of each branch before subtracting the results obtained in requirement 1? (Enter your answers in thousands of dollars.) Contribution of Each Branch Sales Less: Direct labor Less: Direct materials Less: Direct overhead Contribution margin (in thousands) Columbus Cincinnati Dayton Total $ 0 $ 0 $ 0 $ 0 Required: 1. What overhead costs should be assigned to each branch based on ABC concepts? 2. What is the contribution of each branch before subtracting the results obtained in requirement 1? 3. What is the profitability of each branch office using ABC? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the profitability of each branch office using ABC? (Enter your answers in thousands of dollars. Round your intermediate calculations and "Activity based overhead" to 2 decimal places.) Profitability of Each Branch Based on Activity-based Costing (in thousands) Columbus Cincinnati Contribution margin Dayton Total $ Activity-based overhead Operating income(loss) $ 0.00 $ 0.00 $ 0.00 $ 0.00