Singh and Danzin is an architectural firm that provides services for residential construction projects. The following overhead cost data are from the current period. Budgeted Costs Budgeted Activity Usage contact hours design hours Activity Client consultation $ 292,500 1,500 Drawings 130,000 2,000 1. Compute an activity rate for each activity using activity-based costing. 2. Allocate overhead cost to a job that requires 60 contact hours and 355 design hours. 1. Compute an activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 decimal places.) Activity Budgeted Cost Budgeted Activity Usage Activity Rate Client consultation Drawings 2. Allocate overhead cost to a job that requires 60 contact hours and 355 design hours. (Round "Activity Rate" to 2 decimal places and other answers to the nearest whole dollar amount.) Activity Activity Usage Activity Rate Allocated Cost Client consultation Drawings

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Singh and Danzin is an architectural firm that provides services for residential construction projects. The following
overhead cost data are from the current period.
Budgeted
Costs
Budgeted Activity
Usage
contact
Activity
Client
consultation
$ 292,500
1,500
hours
design
hours
Drawings
130,000
2,000
1. Compute an activity rate for each activity using activity-based costing.
2. Allocate overhead cost to a job that requires 60 contact hours and 355 design hours.
1. Compute an activity rate for each activity using activity-based costing. (Round "Activity
rate" to 2 decimal places.)
Budgeted
Cost
Activity
Budgeted Activity Usage
Activity Rate
Client consultation
Drawings
2. Allocate overhead cost to a job that requires 60 contact hours and 355 design hours. (Round
"Activity Rate" to 2 decimal places and other answers to the nearest whole dollar amount.)
Activity
Activity Usage
Activity Rate
Allocated Cost
Client consultation
Drawings
Transcribed Image Text:Singh and Danzin is an architectural firm that provides services for residential construction projects. The following overhead cost data are from the current period. Budgeted Costs Budgeted Activity Usage contact Activity Client consultation $ 292,500 1,500 hours design hours Drawings 130,000 2,000 1. Compute an activity rate for each activity using activity-based costing. 2. Allocate overhead cost to a job that requires 60 contact hours and 355 design hours. 1. Compute an activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 decimal places.) Budgeted Cost Activity Budgeted Activity Usage Activity Rate Client consultation Drawings 2. Allocate overhead cost to a job that requires 60 contact hours and 355 design hours. (Round "Activity Rate" to 2 decimal places and other answers to the nearest whole dollar amount.) Activity Activity Usage Activity Rate Allocated Cost Client consultation Drawings
Expert Solution
Step 1

Lets understand the basics.

In activity based costing, activity rate is calculated by the dividing budgeted costs with the budgeted activity usage.

Activity rate = Budgeted costs/Budgeted activity usage

 

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