Question
Flynn Industries has three activity cost pools and two products. It expects to produce 2,280 units of Product BC113 and 1,390 of Product AD908. Having
Flynn Industries has three activity cost pools and two products. It expects to produce 2,280 units of Product BC113 and 1,390 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 | 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 setup | Setups | $20,520 | 40 | 27 | 13 | |||||
Machining | Machine hours | 112,125 | 4,875 | 1,061 | 3,814 | |||||
Packing | Orders | 23,358 | 458 | 190 | 268 |
Using the above data, do the following:
Prepare 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 |
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