Spin Cycle Architecture uses three activity pools to apply overhead to its projects. Each activity has a cost driver used to assign the overhead costs to the projects. The activities and related overhead costs are as follows: initial concept formation $40,000, design $300,000, and construction oversight $100,000. The cost drivers and estimated use are as follows.

a. Compute the predetermined overhead rate for each activity.

b. Classify each of these activities as unit-level, batch-level, product-level, or facility-level.

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Estimated Use of Cost Activities Cost Drivers Drivers per Activity Initial concept formation Number of project changes Square feet Number of months 20 Design Construction oversight 150,000 100