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 $27,000 45 28 17 Machining Machine hours Packing Orders 109,560 26,950 4,980 490 1.180 3,800 140 350 Using the above data, do the following: (a) Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. Activity Estimated Cost Overhead Pools Machine setup Machining Estimated Use of Cost Drivers per Activity setups machine hours SA $ Activity-Based Overhead Rates per setup per machine hr. Packing orders SA per order
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