Question
Yasiel, Designs, LLC designs custom storage solutions to businesses. The following data is from the company's most reporting period: Design Department Client consultation 500 contact
Yasiel, Designs, LLC designs custom storage solutions to businesses. The following data is from the company's most reporting period:
Design Department
Client consultation 500 contact hours | $100,000
Drawing1,000 design hours|$70,000
Models20,000 Square feet|$ 25,000
Project Management|
Supervisor 250 Days |$43,750
Billings150 Jobs|$ 50,000
(a.) Use ABC to compute overhead rates for each activity. Hint: You should have five different ABC overhead rates based on budgeted costs and overhead drivers above.
(b.) Allocate costs to a 3,000 square foot job that requires 70 contact hours, 25 design hours, and 10 days to complete.Hint: Use the ABC overhead rates that you calculated in part (a) to allocate the overhead for each activity to this job based on the requirements of this one job. Check: Total overhead for this one job is a number between $20,000 and $23,000.
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