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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 Estimated Use of Cost Product Product Activity Cost Pools Cost Drivers Overhead Drivers per Activity BC113 AD908 Machine setup Setups Machining Machine hours Packing Orders $26,400 82,790 34,170 44 26 18 4,870 510 1,190 170 3,680 340 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 Estimated Overhead Pools Machine setup Machining Estimated Use of Cost Drivers per Activity Activity-Based Overhead Rates per 26400 44 setups 600 setup per machine 82790 4870 17 machine hours hr. per Packing 34170 510 orders 67 order $ 143360
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