Chapter 4 Excercise Question 7 Cardiff and Delp is an architectural firm that pr

Question

Chapter 4 Excercise Question 7

Cardiff and Delp is an architectural firm that provides services for residential construction projects. The following data pertain to a recent reporting period. (Round activity rate answers to 2 decimal places.) Activities Costs Design department Client consultation 1,100 contact hours 2,800 design hours S154,000 144,300 38,500 Modeling 55,000 square feet 800 days S192,000 Billings Collections 9 jobs 9 jobs 9,500 18,240 Required: 1.&2.Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Assign costs to a 7,800 square foot job that requires 470 contact hours, 358 design hours, and 135 days to complete. Expected Activity Driver Activity Rate Costs Client consultation Drawings Modeling Billings/Collection Total Overhead cost

Explanation / Answer

Calculate following :

Activity Expected costs Expected activity driver Activity rate Activity driver incurred Overhead assigned Client consultation 154000 1100 Contact Hour 140 per contact hour 470 65800 Drawings 144300 2600 design hour 55.5 per design hour 358 19869 Modeling 38500 55000 square feet 0.70 per square feet 7600 5320 Super vision 192000 800 Days 240 per day 135 32400 Billing/collection 25740 9 jobs 2860 per job 1 2860 Total overhead cost $126249

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