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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 identied
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 identied 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. Estimated Use of Annual Overhead Data 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 $18,000 45 26 19 Machining Machine hours 113,620 4,940 1,200 3,740 Packing Orders 33,320 490 110 380 Using the above data, do the following: (a) V Your answer is correct. Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. Activit Cost y Estimated Estimated Use of Cost Activity-Based Overhead Drivers per Activity Overhead Rates Pools Machine per setup setup . per . . machine _ Machining 113,620 4,940 machine hours hr. packing : m order 164,940 jrepare a schedule assigning each activity's overhead cost to the two products. BC113 Activity Cost Estimated Use of Cost Activity-Based Cost Estima Pools Drivers per Product Overhead Rates Assigned Drive Machine setup 26 $ 400 $ 10,400 Machining 1,200 $ 23 $27,600 Packing 110 $ 68 7,480 Total assigned costs $ 45,480 AD908 Estimated Use of Cost Activity-Based Cost Drivers per Product Overhead Rates Assigned 19 $ 400 $ 2600 3J40 $ M 00 86,020 '69 380 25,840 $ 11%460 |||_|||_| |_| |_|| I Your answer is incorrect. Compute the overhead cost per unit for each product. (Round answers to 2 decimalplaces, e3. 12.25.) BC113 AD908 Overhead cost per unit $ $
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