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 $$52,400$; design

$$486,000$; and construction oversight $$117,800.$ The cost drivers and estimated use are as follows.

$($a$)$ Compute the predetermined overhead rate for each activity.

$($b$)$ Classify each of these activities as unit$-$level, batch$-$level, product$-$level, or facility$-$level.

Initial concept formation

Design

Construction oversight

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