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. Annual Overhead Data Cost Drivers Activity Cost Pools Machine setup Machining Packing Estimated Use of Cost Drivers per Product Estimated Use of Cost Product Drivers per Activity BC113 43 22 4,930 1,120 550 Estimated Overhead $21,500 123,250 29,700 Setups Machine hours Orders Product AD908 21 3,810 400 150 Using the above data, do the following: Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. Estimated Overhead Estimated Use of Cost Drivers per Activity Activity-Based Overhead Rates Activity Cost Pools Machine setup $ setups $ per setup per machi hr. Machining machine hours $ Packing orders $ per order $ Prepare a schedule assigning each activity's overhead cost to the two products. Activity Cost Pools Esti Estimated Use of Cost Drivers per Product BC113 Activity-Based Overhead Rates Cost Assigned Dr Machine setup $ Machining $ Packing $ Total assigned costs $
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