Flynn Industries has three activity cost pools and two products. It expects to produce 3,000 units of Product BC113 and 1,500 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Flynn accumulated the following data relative to those activity cost pools and cost drivers.

Expected Use of Annual Overhead Data Cost Drivers per Product Estimated Expected Use of Cost Product Product Activity Cost Pool Cost Drivers Overhead Drivers per Activity BC113 AD908 Machine setup Setups $ 16,000 40 25 15 Machining Machine hours 110,000 5,000 1,000 4,000 Packing Orders 30,000 500 150 350 Using the above data, do the following:

(a) Prepare a schedule showing the computations of the activity-based overhead rates per cost driver.

(b) Prepare a schedule assigning each activity’s overhead cost to the two products.

(c) Compute the overhead cost per unit for each product. (Round to nearest cent.)

(d) Comment on the comparative overhead cost per product.AppendixLO1