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IV. Using ABC in a service companySingh and Smythe is an architectural firm that provides services for residential construction projects. The following data pertain to a recent reporting period.CostsDesign departmentClient consultation…………………. 1,500 contact hours$270,000Drawings…………………………… 2,000 design hours 115,00030,000Project management department600 days$120,00010,00012,0001. Using ABC, compute the firm’s activity overhead rates. Form activity cost pools where appropriate. 2. Assign costs to a 9,200 square foot job that requires 450 contact hours, 340 design hours, and 200 days to complete.
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