Please do not give solution in image format ? And Fast Answering Please ? And Explain Proper Step by Step. Miami Valley Architects Inc. provides a wide range of engineering and architectural consulting services through its threebranch offices in Columbus, Cincinnati, and Dayton, Ohio. The company allocates resources and bonuses to the threebranches based on the net Income of the period. The results of the firm's performance for the most recent year follows ($In thousands):SalesLess:Direct laborDirect materialsOverheadNet incomeDirect overheadShow Transcribed TextGeneral administrationProject costingAccounts payable/receivingAccounts receivableMiami Valley accumulates overhead Items In one overhead pool and allocates it to the branches based on direct labordollars. For this year, the predetermined overhead rate was $1.859 for every direct labor dollar incurred by an office. Theoverhead pool Includes rent, depreciation, and taxes, regardless of which office incurred the expense. Some branchmanagers complain that the overhead allocation method forces them to absorb a portion of the overhead Incurred by theother offices.Management is concerned with the recent operating results. During a review of overhead expenses, management noticedthat many overhead Items were clearly not correlated to the movement in direct labor dollars as previously assumed.Management decided that applying overhead based on activity-based costing and direct tracing wherever possibleshould provide a more accurate picture of the profitability of each branch.Payroll/Mail sort and deliveryPersonnel recruitingEmployee insurance processingProposalsSales meetings/Sales aidsShippingOrderingColumbus$ 1,500An analysis of the overhead revealed that the following dollars for rent, utilities, depreciation, and taxes could be traceddirectly to the office that incurred the overhead ($ In thousands):Duplicating costsBlueprintingCost DriverDirect labor costTimesheet entries.382281710$ 127Columbus$ 180Vendor invoicesClient invoicesEmployeesNew hires.Insurance claims filedProposalsContracted salesCincinnati$ 1,419Projects shippedPurchase ordersCopies duplicatedBlueprintsActivity pools and their corresponding cost drivers were determined from the accounting records and staff surveys asfollows:Cincinnati$ 270317421589$92Columbus$382,4136,0001,020588238230200Dayton$ 1,0671,824,439317185589$ (24)99135162,50039,000$ 409,00048,000139,00047,00030,00038,00014,000139,000202,00024,00048,00046,00077,000$ 1,261,000Dayton$ 177Amount of Cost Driver Use by LocationCincinnatiTotal$ 3,9861,0168871,888$195$ 317,0863,80085044426260258Total$ 6271,399,617124110146,25031,200Dayton$317,1883,5004009618718060571,208308065,00016,000 Required:1. What overhead costs should be assigned to each branch based on ABC concepts?2. What is the contribution of each branch before subtracting the results obtained in requirement 1?3. What is the profitability of each branch office using ABC?Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3What overhead costs should be assigned to each branch based on ABC concepts? (Do not round intermediate calculations. Enter your answers inthousands of dollars, rounded to two decimal places.)General administrationProject costingAccounts payable/receivingAccounts receivablePayroll/Mail sort and deliveryPersonnel recruitingEmployee insurance processingProposalsSales meetings/Sales aidsShippingOrderingDuplicating costsBlueprintingTotalShow Transcribed TextRequired 1 Required 2SalesLess: Direct laborLess: Direct materialsLess: Direct overheadContribution marginDirect labor costTimesheet entriesShow Transcribed TextContribution marginActivity-based overheadOperating income(loss)Activity-based Overhead Allocation(in thousands)Vendor InvoicesClient invoicesRequired 3Cost DriverEmployeesNew hiresInsurance claims filedProposalsContracted salesProjects shippedPurchase ordersCopies duplicatedBlueprintsColumbusContribution of Each Branch(in thousands)What is the contribution of each branch before subtracting the results obtained in requirement 1? (Enter your answers inthousands of dollars.)Required 3Cincinnati< Required 1DaytonColumbus CincinnatiProfitability of Each Branch Based on Activity-based Costing(in thousands)ColumbusDaytonCincinnati< Required 2TotalRequired 3 >Required 1 Required 2What is the profitability of each branch office using ABC? (Enter your answers in thousands of dollars. Round yourintermediate calculations and "Activity based overhead" to 2 decimal places.)ŰgRequired 3 >ĆDaytonTotalTotal

Activity-based costing is a costing approach in which a company's activities are identified and the…

Miami Valley Architects Inc. provides a wide range of engineering and architectural consulting services through its three branch offices in Columbus, Cincinnati, and Dayton, Ohio. The company allocates resources and bonuses to the three branches based on the net Income of the period. The results of the firm's performance for the most recent year follows (S In thousands): Sales Less: Direct labor Direct materials Overhead Net income Direct overhead Show Transcribed Text General administration Project costing Columbus $ 1,500 Miami Valley accumulates overhead Items in one overhead pool and allocates it to the branches based on direct labor dollars. For this year, the predetermined overhead rate was $1.859 for every direct labor dollar incurred by an office. The overhead pool Includes rent, depreciation, and taxes, regardless of which office incurred the expense. Some branch managers complain that the overhead allocation method forces them to absorb a portion of the overhead Incurred by the other offices. 382 281 710 $ 127 Management is concerned with the recent operating results. During a review of overhead expenses, management noticed that many overhead Items were clearly not correlated to the movement in direct labor dollars as previously assumed. Management decided that applying overhead based on activity-based costing and direct tracing wherever possible should provide a more accurate picture of the profitability of each branch. Columbus $ 180 Accounts payable/receiving Accounts receivable Payroll/Mail sort and delivery Personnel recruiting Employee insurance processing Proposals An analysis of the overhead revealed that the following dollars for rent, utilities, depreciation, and taxes could be traced directly to the office that incurred the overhead ($ in thousands): Sales meetings/Sales aids Shipping Ordering Duplicating costs Blueprinting Cost Driver Direct labor cost Timesheet entries Vendor invoices Client invoices Employees New hires Cincinnati $ 1,419 Insurance claims filed Proposals Contracted sales Projects shipped Purchase orders Copies duplicated Blueprints 317 421 589 $ 92 Cincinnati $ 270 Activity pools and their corresponding cost drivers were determined from the accounting records and staff surveys as follows: 162,500 Dayton $ 1,067 39,000 317 185 589 $ (24) Dayton $ 177 $ 409,000 48,000 139,000 47,000 30,000 38,000 14,000 139,000 202,000 24,000 48,000 Total $ 3,986 46,000 77,000 $ 1,261,000 1,016 887 1,888 $ 195 Total $ 627 3 Columbus $ 382,413 Amount of Cost Driver Use by Location Cincinnati $ 317,086 6,000 3,800 1,020 850 588 444 23 26 8 4 11 230 260 200 250 1,824,439 1,399,617 99 124 135 110 146,250 31,200 Dayton $ 317,188 3,500 400 96 18 7 180 68 571,208 30 80 65,000 16,000 C