Compute the firms activity overhead rates

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Reference no: EM13662800

Using ABC in a service company

Singh and Smythe is an architectural firm that provides services for residential construction projects. The following data pertain to a recent reporting period.

Activities costs

Design department

Client consultation ................................... 1,500 contact hours $270,000

Drawings ............................................................. 2,000 design hours I 15,000

Modeling .............................................................. 40,000 square feet 30,000

Project management department

Supervision .............................................. 600 days $ 120.000

Billings ................................................................ 8 jobs 10,000

Collections ............................................... 8 jobs 12,000

1. Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate.

2. Assign costs to a 9,200 square foot job that requires 450 contact hours, 340 design hours, and 200 days to complete.

Reference no: EM13662800

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