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 $45,400; design $290,000; and construction oversight $122,850. The cost drivers and estimated use are as follows. Estimated Use of Cost Drivers per Activity Activities Initial concept formation Design Construction oversight Cost Drivers Number of project changes Square feet Number of months 145,000 105 (a) Compute the predetermined overhead rate for each activity. Overhead Rate Initial concept formation per project change to Design per square foot o Construction oversight Per month to (b) Classify each of these activities as unit-level, batch-level, product-level, or facility-level. Level Activities Initial concept formation Design Construction oversight Batch-level Product-level Unit-level Facility-level
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