Q1. Compute the overhead allocated to each project in 2017 using the simple costing system that allocates overhead costs to jobs based on the number of jobs.
Extracted text: DLN is an architectural firm that designs and builds build- ings. It prices each job on a cost plus 20% basis. Overhead costs in 2017 are $8,100,000. DLN's simple cost- ing system allocates overhead costs to its jobs based on number of jobs. There were three jobs in 2017. One customer, Chandler, has complained that the cost and price of its building in Chicago was not competitive. As a result, the controller has initiated a detailed review of the overhead allocation to determine if overhead costs should be charged to jobs in proportion to consumption of overhead resources by jobs. She gathers the following information: Quantity of Cost Drivers Used by Each Project Overhead Manley 8,000 4,500 26,000 Department Design Engineering Construction Cost Driver Costs in 2017 Chandler Нeпry Design department hours Number of engineering hours $3,000,000 1,000,000 4,100,000 $8,100,000 2,000 4,000 29,000 10,000 4,000 27,000 Labor-hours