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 $; design $; and construction oversight $ The cost drivers and estimated use are as follows.
tableActivitiesCost Drivers,tableEstimated Use of CostDrivers per ActivityInitial concept formation,Number of project changes,DesignSquare feet,Construction oversight,Number of months,
a Compute the predetermined overhead rate for each activity.
Overhead Rate
Initial concept formation
per project change
Design
$
per square foot
Construction oversight
$
Per month
b Classify each of these activities as unitlevel, batchlevel, productlevel, or facilitylevel.
Activities
Level
Initial concept formation
Design
Construction oversight
