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

Spin Cycle Architecture uses three activity pools to apply overhead to its

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 $49,400; design $260,000; and construction oversight $122,850. 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 20 Design Square feet 130,000 Construction oversight Number of months 105 (a) Compute the predetermined overhead rate for each activity. Initial concept formation $ Design $ Construction oversight $ Overhead Rate per project change. per square foot Per month (b) Classify each of these activities as unit-level, batch-level, product-level, or facility-level. Activities Initial concept formation Design Construction oversight eTextbook and Media Level

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