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 consultation750 contact hours$127,500 Drawing1,200 design hours$96,000 Models15,000 square feet$21,000Project Management?? Supervision225 days$40,500 Billings150 jobs$54,000Requireda. 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.
What will be an ideal response?
| a. Client consultation | $127,500/750 contact hours | $170/contact hour |
| Drawing | $96,000/1,200 design hours | $80/design hour |
| Models | $21,000/15,000 sq. ft. | $1.40/sq. ft. |
| Supervision | $40,500/225 days | $180/day |
| Billings | $54,000/150 jobs | $360/job |
| ? | ? | ? |
| b. Client consultation | ($170/contact hour)(70 hrs) | = $11,900 |
| Drawing | ($80/design hour)(20 hrs) | = 1,600 |
| Models | ($1.40/sq. ft.)(3,000 sq ft) | = 4,200 |
| Supervision | ($180/day)(14 days) | = 2,520 |
| Billings | ($360/job)(1 job) | = 360 |
| Total job cost | ? | $20,580 |
Business
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