Question
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 | Estimated Use of Cost Drivers per Product | |||||||||
Activity Cost Pools | Cost Drivers | Estimated Overhead | Estimated Use of Cost Drivers per Activity | Product BC113 | Product AD908 | |||||
Machine setup | Setups | $23,400 | 39 | 27 | 12 | |||||
Machining | Machine hours | 87,120 | 4,840 | 1,050 | 3,790 | |||||
Packing | Orders | 26,500 | 500 | 180 | 320 |
Using the above data, do the following:
Prepare a schedule assigning each activitys overhead cost to the two products.
BC113 | AD908 | |||||||||||
Activity Cost Pools | Estimated Use of Cost Drivers per Product | Activity-Based Overhead Rates | Cost Assigned | Estimated Use of Cost Drivers per Product | Activity-Based Overhead Rates | Cost Assigned | ||||||
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