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. Estimated Use of Cost Activities Cost Drivers Drivers per Activity Initial concept formation Number of project changes 15 Design Square feet 125,000 Construction oversight Number of months 95 (a) Compute the predetermined overhead rate for each activity, Overhead Rate per project change Initial concept formation $ Design $ per square foot $ Per month Construction oversight (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. Activities Level Initial concept formation Design Construction oversight
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