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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 Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Cost Drivers per Activity Product BC113 Product AD908 Machine setup Setups $14,800 37 27 10 Machining Machine hours 82,080 5,130 1,040 4,090 Packing Orders 26,000 500 120 380 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 Estimated Pools Overhead Machine setup Machining Packing Estimated Use of Cost Activity-Based Overhead Rates Drivers per Activity setups per setup $ machine hours per machine hr. orders per order
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