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Singh and Smythe is an architectural firm that provides services for residential construction projects. The following data pertain to a recent reporting period. (Round activity
Singh and Smythe 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 1,200 contact hours 1,800 design hours 46,000 square feet $144,000 99,000 32,200 1,300 days 7 jobs 7 jobs $ 286,000 8,300 10,740 1. Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Activity Expected Costs Expected Activity Driver Activity Rate Client consultation per contact hour Drawings per design hour Modeling 0 per square foot Supervision o per day Billings/Collections 0 per job 2. Assign costs to a 7,000-square-foot job that requires 410 contact hours, 342 design hours, and 125 days to complete. ----------Activity rate ---------- Activity driver Overhead assigned incurred Client consultation per contact hour Drawings per design hour Modeling Supervision Billings/Collections
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