**Cardiff and Delp: Activity-Based Costing for Residential Construction Projects**Cardiff and Delp is an architectural firm providing services for residential construction projects. Below is the data from a recent reporting period, broken down into activities and associated costs within different departments.### Activities and Costs:**Design Department:**- **Client Consultation:** - **Activities:** 1,700 contact hours - **Costs:** $289,000- **Drawings:** - **Activities:** 2,000 design hours - **Costs:** $114,000- **Modeling:** - **Activities:** 53,000 square feet - **Costs:** $31,800**Project Management Department:**- **Supervision:** - **Activities:** 1,300 days - **Costs:** $273,000- **Billings:** - **Activities:** 7 jobs - **Costs:** $8,700- **Collections:** - **Activities:** 7 jobs - **Costs:** $12,300### Required:1 & 2. **Using Activity-Based Costing (ABC):** - Compute the firm's activity overhead rates. - Form activity cost pools where appropriate. - Assign costs to a project size of an 8,000-square-foot job needing: - 430 contact hours - 354 design hours - 165 days to complete*(Round activity rate answers to 2 decimal places.)*### Table for Calculations:| Activity | Expected Costs | Expected Activity Driver | Activity Rate | Activity Driver Incurred | Overhead Assigned ||-----------------------|----------------|--------------------------|---------------|--------------------------|-------------------|| Client consultation | | | | | || Drawings | | | | | || Modeling | | | | | || Supervision | | | | | || Billings/Collection | | | | | || | | | | | || Total overhead cost | | | | | |This table will be used to compute the activity rates and assign overhead costs based on the required activity drivers specific to the project.

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Description: **Cardiff and Delp: Activity-Based Costing for Residential Construction Projects**Cardiff and Delp is an architectural firm providing services for residential construction projects. Below is the data from a recent reporting period, broken down into

ABC Costing means Activtiy based costing which means that every overhead will be allocated on the…

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Cardiff and Delp 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 1,700 contact hours 2,000 design hours 53,000 square feet $289,000 114,000 31,800 Drawings Modeling Project management department Supervision Billings Collections 1,300 days 7 jobs 7 jobs $273,000 8,700 12,300 Required: 1. & 2. Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Assign costs to a 8,000- square-foot job that requires 430 contact hours, 354 design hours, and 165 days to complete. (Round activity rate answers to 2 decimal places.) Activity Driver Incurred Overhead Activity Expected Costs Expected Activity Driver Activity Rate Assigned Client consultation Drawings Modeling Supervision Billings/Collection

Cardiff and Delp 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 1,700 contact hours 2,000 design hours 53,000 square feet $289,000 114,000 31,800 Drawings Modeling Project management department Supervision Billings Collections 1,300 days 7 jobs 7 jobs $273,000 8,700 12,300 Required: 1. & 2. Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Assign costs to a 8,000- square-foot job that requires 430 contact hours, 354 design hours, and 165 days to complete. (Round activity rate answers to 2 decimal places.) Activity Driver Incurred Overhead Activity Expected Costs Expected Activity Driver Activity Rate Assigned Client consultation Drawings Modeling Supervision Billings/Collection

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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