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 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 $40,050; design $250,000; and construction oversight $114,950. 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 15 125,000 95 (a) Compute the predetermined overhead rate for each activity. Overhead Rate Initial concept formation $ per project change Design $ per square foot Construction oversight $ Per month (b) Classify each of these activities as unit-level, batch-level, product-level, or facility-level. Activities Level Initial concept formation Design Construction oversight Unit-level Batch-level Facility-level Product-level e Textbook and Media Save for Later
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