Theta Construction Scenario Activity Based Costing (ABC) Data Theta Construction uses activity based costing to allocate overhead costs The company identified the following cost pools and cost drivers Cost Pool 1 $300,000, Cost Driver Number of Inspections, Driver Quantity 1,500 Cost Pool 2 $200,000, Cost Driver Square Feet of Construction, Driver Quantity 100,000 Requirements Allocate overhead costs to Theta Construction's projects using activity based costing Calculate the overhead cost per unit for each cost pool Analyze the cost allocation results and discuss how ABC improves cost accuracy and decision making in the construction industry

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Question: Theta Construction Scenario: Activity-Based Costing (ABC) Data: Theta Construction uses activity-based costing to allocate overhead costs. The company identified the following cost pools and cost

Theta Construction

Scenario: Activity-Based Costing (ABC)

Data: Theta Construction uses activity-based costing to allocate overhead costs. The company identified the following cost pools and cost drivers:

Cost Pool 1: $300,000, Cost Driver: Number of Inspections, Driver Quantity: 1,500
Cost Pool 2: $200,000, Cost Driver: Square Feet of Construction, Driver Quantity: 100,000

Requirements: Allocate overhead costs to Theta Construction's projects using activity-based costing. Calculate the overhead cost per unit for each cost pool. Analyze the cost allocation results and discuss how ABC improves cost accuracy and decision-making in the construction industry.

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