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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
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 $42,200; design $556,000; and construction oversight $124,200. The cost drivers and estimated use are as follows. Estimated Use of Cost Activities Cost Drivers Drivers per Activity Initial concept formation Number of project changes 20 Design Square feet 139,000 Construction oversight Number of months 115 (a) Compute the predetermined overhead rate for each activity. Overhead Rate Initial concept formation $ per project change Design per square foot Construction oversight Per month (b) Classify each of these activities as unit-level, batch-level, product-level, or facility-level. (b) Classify each of these activities as unit-level, batch-level, product-level, or facility-level. Activities Initial concept formation Design Construction oversight Level
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