1) A construction company has 5 projects. The contract amount of each project is as follows: Project 1: $1,000,000 Project 2: $2,000,000 Project 3: $1,500,000 Project 4: $1,200,000 Project 5: $ 800,000 The total overhead of this company is $120,000. Determine the overhead allocated to each of the projects if the contract amount is the allocation base. (20 points)

2) The controller decides to interview key managers of the Manufacturing, Design, and Quality departments.

The results are:

Department	overhead	costdriver
manufacturing	100000	machine hours
design	54000	No. of drawing sheet
quality	120000	No. of inspection

Details regarding the usage of cost drivers for 3 contracts are:

Department Cost driver A B C

Manufacturing Machine hours 560 450 290

Design Number of Drawing Sheet 80 70 100

Quality Number of Inspection 160 155 190

- What is the overhead cost rate for each department? (10 points)

- What is overhead costs allocated to each contract? (10 points)