Inside Out, Company designs custom showroom spaces in interior design marts across the country. The following data pertain to a recent reporting period.\
Design Department
Client consultation 750 contact hours $127,500
Drawing 1,200 design hours $96,000
Models 15,000 square feet $21,000
Project Management
Supervision 225 days $40,500
Billings 150 jobs $54,000
Required
a. Use ABC to compute overhead rates for each activity.
b. Assign costs to a 3,000 square-foot job that requires 70 contact hours, 20 design hours, and 14 days to complete.

Question

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The Answer of Inside Out, Company designs custom showroom spaces in interior design marts across the country. The following data pertain to a recent reporting period.\
Design Department
Client consultation 750 contact hours $127,500
Drawing 1,200 design hours $96,000
Models 15,000 square feet $21,000
Project Management
Supervision 225 days $40,500
Billings 150 jobs $54,000
Required
a. Use ABC to compute overhead rates for each activity.
b. Assign costs to a 3,000 square-foot job that requires 70 contact hours, 20 design hours, and 14 days to complete.

Inside Out, Company Designs Custom Showroom Spaces in Interior Design