Question: Spin Cycle Architecture uses three activity pools to apply overhead to its projects. Each activity has a cost driver used to allocate the overhead costs

 Spin Cycle Architecture uses three activity pools to apply overhead to

Spin Cycle Architecture uses three activity pools to apply overhead to its projects. Each activity has a cost driver used to allocate the overhead costs to the projects. The activities and related overhead costs are as follows: initial concept formation $52,960; design $420,000; and construction oversight $118,650. The cost drivers and estimated use are as follows. Activities Initial concept formation Design Construction oversight Cost Drivers Number of project changes Square feet Number of months Estimated Use of Cost Drivers per Activity 16 140,000 105 (a) Compute the predetermined overhead rate for each activity. Overhead Rate per project change Initial concept formation $ Design $ per square foot Construction oversight $ Per month (b) Classify each of these activities as unit-level, batch-level, product-level, or facility-level. Level > Activities Initial concept formation Design > Construction oversight >

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