Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Flynn Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified

image text in transcribed

Flynn Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 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. Product AD908 Annual Overhead Data Estimated Activity Cost Pools Cost Drivers Overhead Machine setup Setups $22,000 Machining Machine hours 97,200 Packing Orders 30,080 Estimated Use of Cost Drivers per Product Estimated Use of Cost Product Drivers per Activity BC113 44 23 4,860 1,150 470 100 21 3,710 370 Using the above data, do the following: Your answer is correct. Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. Activity Cost Estimated Estimated Use of Cost Activity-Based Pools Overhead Drivers per Activity Overhead Rates Machine setup 22000 44 setups 500 per setup Machining 97200 4860 machine hours 20 per machine hr. Packing 30080 470 orders 64 per order 149280 (b) Your answer is correct. Prepare a schedule assigning each activity's overhead cost to the two products. Activity Cost Pools BC113 Estimated Use of Cost Activity-Based Drivers per Product Overhead Rates Cost Assigned AD908 Estimated Use of Cost Activity-Based Drivers per Product Overhead Rates Cost Assigned 10500 23 500 11500 21 500 Machine setup Machining 1150 20 23000 3710 20 74200 $l Packing 1001 64 6400 370 64 23680 Total assigned costs 40900 108380 Click if you would like to Show Work for this question: Open Show Work (c) Compute the overhead cost per unit for each product. (Round answers to 2 decimal places, e.g. 12.25.) BC113 AD908 Overhead cost per unit $ $ Click if you would like to Show Work for this question: Open Show Work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud Examination Investigative And Audit Procedures

Authors: Joseph T. Wells

1st Edition

089930639X, 978-0899306391

More Books

Students also viewed these Accounting questions

Question

What is human nature?

Answered: 1 week ago