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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
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. Annual Overhead Data Estimated Use of Cost Drivers per Product Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Cost Product Drivers per Activity Product BC113 AD908 Machine setup Setups $21,000 42 25 17 Machining Machine hours 83,040 5,190 1,040 4,150 Packing Orders 27,140 460 160 300 Using the above data, do the following: Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. Activity Cost Estimated Overhead Pools Machine setup Machining Packing $ Estimated Use of Cost Drivers per Activity setups $ machine hours orders S Activity-Based Overhead Rates per setup per machin hr. per order Prepare a schedule assigning each activity's overhead cost to the two products. Activity Cost Pools Estimated Use of Cost Drivers per Product Machine setup Machining Packing Total assigned costs BC113 Activity-Based Overhead Rates Cost Est Assigned Di $ $ $ $ Prepare a schedule assigning each activity's overhead cost to the two products. AD908 Cost Assigned Estimated Use of Cost Activity-Based Drivers per Product Overhead Rates Cost Assigned $ $ Overhead cost per unit Compute the overhead cost per unit for each product. (Round answers to 2 decimal places, e.g. 12.25.) BC113 AD908 69
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