Answer:
The predetermined overhead rate for each activity.
Activities: Initial concept formation $42,200;
Cost Drivers: Number of project changes
Expected Use of Cost Driver/Activity = 15
Predetermined overhead rate for activity = Overhead/Cost Driver= 42,200/ 15= $2813
Activities: Design $556,000;
Cost Drivers :Square feet
Expected Use of Cost Driver/Activity = 38,000
Predetermined overhead rate for activity =Overhead/Cost Driver= 556,000/ 38,000
=$ 14.63
Activities: Construction oversight $124,200.
Cost Drivers: Number of months
Expected Use of Cost Driver/Activity= 105
Predetermined overhead rate for activity = Overhead/Cost Driver= 124,220/ 105
= 1183.04
