Answered step by step
Verified Expert Solution
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
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 Product AD908 Activity Cost Pools Machine setup Machining Packing Estimated Overhead $22,000 97,200 30,080 Cost Drivers Setups Machine hours Orders 21 Estimated Use of Cost Drivers per Product Estimated Use of Cost Product Drivers per Activity BC113 44 23 4,860 1,150 470 100 3,710 370 Using the above data, do the following: (a) Your answer is correct. Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. Activity Cost Pools Estimated Overhead Estimated Use of Cost Drivers per Activity Activity-Based Overhead Rates Machine setup 22000 44 setups 500 per setup Machining 972001 4860 machine hours 20 per machine hr. Packing 30080 470 orders 64 per order 1 149280 (b) 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 Machine setup $ $ $ $ Machining $ $ Packing $ $ Total assigned costs $ $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started