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Spin Cycle Architecture uses three activity pools to apply overhead to its projects. Each activity...

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Accounting

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 $41,000; design $334,000; and construction oversight $116,550. The cost drivers and estimated use are as follows.
\table[[Activities,Cost Drivers,\table[[Estimated Use of Cost],[Drivers per Activity]]],[Initial concept formation,Number of project changes,25],[Design,Square feet,167,000],[Construction oversight,Number of months,105]]
(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 unit-level, batch-level, product-level, or facility-level.
Activities
Level
Initial concept formation
Design
Construction oversight
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