Answer Happy

Case Construction Company, a three-year-old business, provides contracting and construction services to a variety of clients. Given that each construction job is different from any other, company accountant Susan Kalagnanam decided that it was best to use a job order costing system to allocate costs to the different jobs. She decided to use construction labour-hours as the basis for overhead allocation. In December 2020, she estimated the following amounts for the year 2021 Direct materials Construction labour Overhead $13,395,200 8,165,000 8,847,700 460,000 Construction labour-hours Kalagnanam recorded the following for the first quarter of 2021 for the three jobs that the company started and completed during the quarter: Cinens Direct materials $753,500 School Residential $904,200 16,000 Construction labour-hours $1,356,300 16,100 62,100 Required: 1. Compute the cost of each job using the current system of cost allocation. (Round intermediate calculations to 2 decimal places) School Residential Cinema Direct Material Construction Labour Overhead Total cost Che
2. Tyler Case, the company's CEO, recently returned from a seminar on activity-based costing and instructed Kalagnanam to consider Implementing the new system. As a first step, he instructed her to analyze the overhead costs for 2021. Through her research she was able to derive the following breakdown of the estimated overhead costs for 2021: Activity Foundation laying Amount Activity Volume 387,600 Building construction Activity Measure Foundation laying hours Construction labour-hours Painting-hours Finishing hours $ 2,228,700 2,185,000 2,295,000 2,139,000 Painting Finishing 460,000 510,000 600,000 She also documented the following activity on the three jobs during the first quarter of 2021 (in addition to the construction labour- hours consumed by the three jobs): Schfool Residential Cinema Foundation-laying hours 49,600 48,000 57,300 Painting-hours 67, 120 42,050 58,000 Finishing-hours 35,800 53,820 89,700 a. Calculate the activity rates for each of the four activities (Round your answers to 2 decimal places.) Activity Activity Rate Foundation laying Building construction Painting Finishing per FLH per CLH per PH per FH
b. Calculate the total cost of each job using activity-based costing. (Do not round intermediate calculations and round your final answers nearest to whole number.) School Residential Cinema Total cost