Question
Flynn Industries has three activity cost pools and two products. It expects to produce2,410units of Product BC113 and1,570of Product AD908. Having identified its activity cost
Flynn Industries has three activity cost pools and two products. It expects to produce2,410units of Product BC113 and1,570of 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
Expected Use of
Cost Drivers per Product
Activity Cost Pools
Cost Drivers
Estimated
Overhead
Expected Use of Cost
Drivers per Activity
Product
BC113
Product
AD908
Machine setupSetups$22,640402713MachiningMachine hours93,5465,1971,0994,098PackingOrders25,920480165315
Using the above data, do the following:
Prepaare a schedule showing the computations of the activity-based overhead rates per cost driver.
Activity Cost
Pools
Estimated
Overhead
Expected Use of Cost
Drivers per Activity
Activity-Based
Overhead Rates
Machine setup$
setups$
per setupMachining
machine hours$
per machine hr.Packing
orders$
per order$
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