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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
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 Estimated Activity Cost Pools Cost Drivers Overhead Estimated Use of Cost Drivers per Activity Product Product BC113 AD908 Machine setup Setups $18,500 37 26 11 Machining Machine hours 106,920 4,860 1,180 3,680 Packing Orders 35,640 540 180 360 Using the above data, do the following: (a) Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. Activity Cost Pools Machine $ setup Machining Packing $ Estimated Overhead Estimated Use of Cost Drivers per Activity setups machine $ hours Activity-Based Overhead Rates per setup per machine hr. per orders $ order
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