Brief Exercise 17-12 Your answer is partialy correct. Try agan. Spin Cycle Archt

Question

Brief Exercise 17-12 Your answer is partialy correct. Try agan. Spin Cycle Archtecture uses three activity pools to apply overhead to its projects. Each activity has a cost driver used to alocate the overhead costs to the projects. The activities and related overhead costs are as folows: inital concept formation $41,500; desgn $308,000; and construction overs ght $124,800. The cost drivers and expected use are as folows. Expected Use of Cost Drivers per Activity Activities Cost Drivers Intial concept formaton Design Construction oversight Number of project changes Square teet Number of months 174,000 95 (a) Compute the predetermined overmead 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 tormation per projoct change Design per square foot Construction oversight Per month (b) Classty each ot these activities as unit-lovel, batch-level, product-level, or facilty-level Activities Level Initial concept formation Des gn Construction overs ghBatch-loval Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT TUTORIAL Question Attempts:5 of 15 used SAVE FOR LATER SUDMIT ANSWEA

Explanation / Answer

(a) Initial concept formation = $41,500 / 22 = $1,886

(b) Design = $308,000 / 174,000 = $1.77 per square foot

(c) Construction oversight = $124,600 / 95 = $1,312

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