Question
Flynn Industries has three activity cost pools and two products. It expects to produce 3,830 units of Product BC113 and 1,980 of Product AD908. Having
Flynn Industries has three activity cost pools and two products. It expects to produce 3,830 units of Product BC113 and 1,980 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 setupSetups$21,645392118MachiningMachine hours102,2914,8711,0623,809PackingOrders28,168503162341
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Flynn Industries has three activity cost pools and two products. It expects to produce 3,830 units of Product BC113 and 1,980 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. Expected Use of Cost Drivers per Product Annual Overhead Data Estimated Overhead Expected Use of Cost Drivers per Activity Product BC113 Product AD908 Activity Cost Pools Cost Drivers Machine setup Setups $21,645 39 21 18 Machining Machine hours 102,291 4.871 1,062 3,809 Packing Orders 28,168 503 162 341 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 Machine setup $ setups $ per setup Machining machine hours HA per machin hr. Packing orders $ per $ order $ Prepare a schedule assigning each activity's overhead cost to the two products. BC113 Activity Cost Pools Expected Use of Cost Drivers per Product Activity-Based Overhead Rates Cost Assigned Expected Use Drivers per F Machine setup $ $ Machining $ Packing $ Total assigned costs $ Prepare a schedule assigning each activity's overhead cost to the two products. AD908 Cost Assigned Expected Use of Cost Drivers per Product Activity-Based Overhead Rates Cost Assigned $ $ $ $ $ $ $ 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 $ S $Step by Step Solution
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