recent reporting period. Design department Client consultation Provicies Services for residential construction projects. The following data pertain to a Activities Costs 1,500 contact hours $285,000 Drawings 2,400 design hours 138,000 Modeling Supervision 53,000 square feet 37,100 Project management department 900 days $189,000 Billings Collections 12 jobs 12 jobs 8,200 23,120 Required: 1. & 2. Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Assign costs to a 8,200 square foot job that requires 440 contact hours, 358 design hours, and 170 days to complete. (Round activity rate answers to 2 decimal places.) Activity Expected Costs Expected Activity Driver Activity Rate Client consultation $ 285,000 1,500 Contact hours Drawings 138,000 2,400 Design hours Modeling Supervision Billings/Collection 37,100 53,000 Square feet $ 0.70 per square feet 189,000 900 Days $ 210.00 per day 8,200 12 Jobs $ 683.33 per job Activity Driver Overhead Incurred Assigned Total overhead cost

recent reporting period. Design department Client consultation Provicies Services for residential construction projects. The following data pertain to a Activities Costs 1,500 contact hours $285,000 Drawings 2,400 design hours 138,000 Modeling Supervision 53,000 square feet 37,100 Project management department 900 days $189,000 Billings Collections 12 jobs 12 jobs 8,200 23,120 Required: 1. & 2. Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Assign costs to a 8,200 square foot job that requires 440 contact hours, 358 design hours, and 170 days to complete. (Round activity rate answers to 2 decimal places.) Activity Expected Costs Expected Activity Driver Activity Rate Client consultation $ 285,000 1,500 Contact hours Drawings 138,000 2,400 Design hours Modeling Supervision Billings/Collection 37,100 53,000 Square feet $ 0.70 per square feet 189,000 900 Days $ 210.00 per day 8,200 12 Jobs $ 683.33 per job Activity Driver Overhead Incurred Assigned Total overhead cost

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 21E: At the end of 20x5, Bing Pharmaceuticals began to implement an environmental quality management...

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Comprehensive support department allocationsManagement at C. Pier Press has decided to allocate costs of the paper’s two support departments (administration and human resources) to the two revenue-generating departments (advertising and circulation). Administration costs are to be allocated on the basis of dollars of assets employed; human resources costs are to be allocated on the basis of number of employees. The following costs and allocation bases are available: Department Direct Costs Number of Employees Assets Employed Administration $1,094,100 14 $541,940 Human resources 689,780 11 408,380 Advertising 1,340,920 17 1,067,360 Circulation 1,893,640 36 2,618,420 Totals $5,018,440 78 $4,636,100 e. Using the algebraic method, allocate the support department costs to the revenue-generating departments. Note: Round percentages in your calculation to the nearest whole percent (for example, round 34.5% to 35%). Note: Round your final answer to the nearest…
Comprehensive support department allocationsManagement at C. Pier Press has decided to allocate costs of the paper’s two support departments (administration and human resources) to the two revenue-generating departments (advertising and circulation). Administration costs are to be allocated on the basis of dollars of assets employed; human resources costs are to be allocated on the basis of number of employees. The following costs and allocation bases are available: Department Direct Costs Number of Employees Assets Employed Administration $1,094,100 14 $541,940 Human resources 689,780 11 408,380 Advertising 1,340,920 17 1,067,360 Circulation 1,893,640 36 2,618,420 Totals $5,018,440 78 $4,636,100 c. Assuming that the benefits-provided ranking is the order shown in the table, use the step method to allocate the support department costs to the revenue-generating departments.Note: Round your final answers only to the nearest whole dollar. Amount allocated…
Comprehensive support department allocationsManagement at C. Pier Press has decided to allocate costs of the paper’s two support departments (administration and human resources) to the two revenue-generating departments (advertising and circulation). Administration costs are to be allocated on the basis of dollars of assets employed; human resources costs are to be allocated on the basis of number of employees. The following costs and allocation bases are available: Department Direct Costs Number of Employees Assets Employed Administration $1,094,100 14 $541,940 Human resources 689,780 11 408,380 Advertising 1,340,920 17 1,067,360 Circulation 1,893,640 36 2,618,420 Totals $5,018,440 78 $4,636,100 c. Assuming that the benefits-provided ranking is the order shown in the table, use the step method to allocate the support department costs to the revenue-generating departments.Note: Round your final answers only to the nearest whole dollar. Amount…