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Flynn Industries has three activity cost pools and two products. It expects to produce 3,800 units of Product BC113 and 1,060 of Product AD908. Having
Flynn Industries has three activity cost pools and two products. It expects to produce 3,800 units of Product BC113 and 1,060 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.
Prepare a schedule showing the computations of the activity-based overhead rates per cost driver.
Question 1 Flynn Industries has three activity cost pools and two products. It expects to produce 3,800 units of Product BC113 and 1,060 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 Cost Drivers per Product Annual Overhead Data Expected Use of Cost Drivers per Activity Product Estimated Product Cost Drivers Activity Cost Pools Overhead 113 AD908 Machine setup $14,436 Setups 36 29 7 Machine hours Machining 116,688 4,862 1,036 3,826 Packing Orders 32,538 493 165 328 Using the above data, do the following: () Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. Activity Cost ools Expected Use of Cost Drivers per Activity Estimated Activity-Based Overhead Rates Overhead Machine setup setups per setup Machining machine hours per machine hr. Packing orders per orderStep by Step Solution
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