Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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. Estimated Use of Cost Drivers per Product Annual Overhead Data Estimated Overhead Estimated Use of Cost Drivers per Activity Product BC113 Product AD908 Activity Cost Pools Cost Drivers Machine setup Setups $ 27,000 45 27 18 Machining Machine hours 98,800 5,200 1,040 4,160 Packing Orders 31,500 450 160 290 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 Pools Estimated Overhead Estimated Use of Cost Drivers per Activity Activity-Based Overhead Rates Machine setup $ 27000 45 setups $ 600 Machining 98800 5200 machine hours $ 19 Packing 31500 450 orders $ $ 70 $ 157300 G (b) Your answer is correct. Prepare a schedule assigning each activity's overhead cost to the two products. BC113 Activity Cost Pools Estimated Use of Cost Drivers per Product Activity-Based Overhead Rates Cost Assigned Machine setup 27 $ 600 $ 16200 Machining 1040 $ 19 19760 Packing 160 $ 70 11200 Total assigned costs $ 47160 eTextbook and Media (c) Your answer is incorrect. Compute the overhead cost per unit for each product. (Round answers to 2 decimal places, e.g. 12.25.) BC113 AD908 Overhead cost per unit $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started