Question

Maya and Karma is an architectural firm that provides services for residential construction projects. The following data including activities and associated cost pools pertain to a recent reporting period. Activities Costs Design department client consultation Drawings Modeling Project management department Supervision Billings Collections 1,700 contact hours 1,600 design hours 43,000 square feet $323,000 84,000 34,400 1,100 days 8 Jobs 8 jobs $253,000 9,600 13,040 Required: 1. & 2. Using ABC, compute the firm's activity overhead rates, Form activity cost pools where appropriate. Assign costs to a 7,200 square-foot job that requires 440 contact hours, 348 design hours, and 200 days to complete. (Round activity rate answers to 2 decimal places.) Activity Expected Costs Expected Activity Driver Activity Rate Activity Driver Incurred Overhead Assigned Client consultation Drawings Modeling Supervision Billings/Collection D 0 0 Total overhead cost

Answer 1

1&2
Activity	Expected costs	Expected Activity Driver		Activity Rate	Activity Driver Incurred	OH assigned
1	2	3	4	5=2/3	6	7=5*6
Client consultation	323000	1700	contact hrs.	190	440	83600
Drawings	84000	1600	design hrs.	52.5	348	18270
Modeling	34400	43000	sq.ft.	0.8	7200	5760
Supervision	253000	1100	days	230	200	46000
Billings /Collection(9600+13040)	22640	8	jobs	2830	1	2830
					Total OH cost	156460