Actually it is the insertion scale that is set to Feet and NOT the drawing units.  Your drawing units are set to decimal inches which can be easily verified using the -DWGUNITS command (note the presence of the dash).

The reason why everything looks so small in your viewport when you assign the scale of 1/4"=1'-0" is that AutoCAD assumed every dimension you entered was in inches and not feet (or feet/inches).  I would have set the units to Architectural and accepted the default precision of 0'-0 1/16".

By the way, I don't think you will be able to get the floor plan plotted out at the scale that you want and have it fit on an 8.5x11 piece of paper.  The floor plan measures 34'-11" side to side and 33'-9" front to back.  Your paper size, if you drew right to the very edge in both directions will only accommodate 34'x44'.  And that's only if you don't include a border.  I would either change the scale to 1/8"=1'-0" or plot to an 11x17 size thus allowing you to retain the original scale you had in mind.

One last thing.  Try making use of layers.  Your drawing should probably have different layers, with different colors, for such things as...

-Walls
-Text
-Dimensions
-Viewports
-Title block & border

Additional layers you might also consider are...

-Windows
-Doors
-Furniture
-Fixtures (plumbing)

Drawing everything on layer 0, color white, is really not the way to go.

Keep in mind that once you have changed your units to architectural you should also edited your dimension style > Primary Units tab > Dimension style to Architectural as well.




Edited by John Connor - 21.Jun.2017 at 15:18

For reference purposes.  Drawing was saved to 2007 file format.

uploads/165260/Second_floor_plan.dwg