Riverbed 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 $47,760; design $286,000; and construction oversight $121,900. The cost drivers and estimated use are as follows. 4 Activities Initial concept formation Design Construction oversight Initial concept formation $ Design (a) Compute the predetermined overhead rate for each activity. Number of project changes Square feet Number of months Construction oversight $ Activities Initial concept formation Design 64 Construction oversight Cost Drivers $ Estimated Use of Cost Drivers per Activity Level Overhead Rate (b) Classify each of these activities as unit-level, batch-level, product-level, or facility-level. 143,000 per project change per square foot Per month 24 115

Riverbed 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 $47,760; design $286,000, and construction oversight $121,900. The cost divers and estimated use are as follows. (a) Compute the predotermined overhead rate for each activity. (b) Classify eachof these activities as unit-level, batch-level, product-tevel oc facility-level