McHale Architects, Inc., designs, engineers, and supervises the construction of custom homes. The following activities were identified
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McHale Architects, Inc., designs, engineers, and supervises the construction of custom homes. The following activities were identified as being most important (step 1 and step 2 of activity-based costing), and cost pools were formed for each activity.
1. Meeting with customers
2. Coordinating inspections with the building department
3. Consulting with contractors
4. Maintaining office equipment
5. Processing customer billings (invoices)
Required:
Perform step 3 of the activity-based costing process by identifying a possible cost driver for each activity.
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