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Spin Cycle Architecture uses three activity pools to apply overhead to its projects. Each activity has a cost driver used to allocate the overhead costs
Spin Cycle Architecture uses three activity pools to apply overhead to its projects. Each activity has a cost driver used to allocate the overhead costs to the projects. The activities and related overhead costs are as follows: initial concept formation $53,800; design $652,000; and construction oversight $118,450. The cost drivers and estimated use are as follows. Estimated Use of Cost Drivers per Activity Activities Cost Drivers Initial concept formation Design Construction oversight Number of project changes Square feet Number of months 20 163,000 115 (a) Compute the predetermined overhead rate for each activity Overhead Rate Initial concept formation Design Construction oversight (b) Classify each of these activities as unit-level, batch-level, product-level, or facility-level. per project change per square foot Per month Activities Level Initial concept formation Design Construction oversight
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