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 $40,200; design $307,000; and construction oversight $123,200. The cost drivers and expected use are as follows.

Activities		Cost Drivers		Expected Use of Cost Drivers per Activity
Initial concept formation		Number of project changes		15
Design		Square feet		138,000
Construction oversight		Number of months		105

(a) Compute the predetermined overhead rate for each activity. (Round overhead rate per square foot to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 1,225.)

		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		Batch-levelProduct-levelFacility-levelUnit-level
Design		Facility-levelUnit-levelBatch-levelProduct-level
Construction oversight		Facility-levelUnit-levelBatch-levelProduct-level