Blue Spruce Cycle Architecture uses three activity pools to apply overhead to its projects Each activity has a cost driver used to assign the overhead costs to the projects The activities and related overhead costs are as follows initial concept formation $40,020 design $292,000 and construction oversight $118,450 The cost drivers and estimated use are as follows Activities Cost Drivers Estimated Use of Cost Drivers per Activity Initial concept formation Number of project changes 23 Design Square feet 146,000 Construction oversight Number of months 115 (a) Compute the predetermined overhead rate for each activity Initial concept formation $ Overhead Rate per project change per square foot Design Construction oversight $ Per month

Question

Blue Spruce Cycle Architecture uses three activity pools to apply overhead to its projects  Each activity has a cost driver used to assign the overhead costs to the projects  The activities and related overhead costs are as follows  initial concept formation $40,020  design $292,000  and construction oversight $118,450  The cost drivers and estimated use are as follows  Activities Cost Drivers Estimated Use of Cost Drivers per Activity Initial concept formation Number of project changes 23 Design Square feet 146,000 Construction oversight Number of months 115 (a) Compute the predetermined overhead rate for each activity  Initial concept formation $ Overhead Rate per project change per square foot Design Construction oversight $ Per month

SolutionInn · Accepted Answer

The Answer is in the image, click to view ...

Question: Blue Spruce Cycle Architecture uses three activity pools to apply overhead to its projects. Each activity has a cost driver used to assign the overhead

Step by Step Solution

Students Have Also Explored These Related Accounting Questions!