Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2017.

Activity Cost Pools		Estimated Overhead		Expected Use of Cost Drivers per Activity
Ordering and receiving		$95,956		14,900	orders
Food processing		480,700		57,500	machine hours
Packaging		1,608,880		442,000	labor hours

For 2017, the company had 10,900 orders and used 50,100 machine hours, and labor hours totaled 506,000.

(a)

Calculate the overhead rates for each activity. (Round answers to 2 decimal places, e.g. 12.25.)

		Overhead Rates
Ordering and receiving		$enter a dollar amount rounded to 2 decimal places	per order
Food processing		$enter a dollar amount rounded to 2 decimal places	per machine hour
Packaging		$enter a dollar amount rounded to 2 decimal places	per labor hour

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2.

Flynn Industries has three activity cost pools and two products. It expects to produce 3,570 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 setup		Setups		$20,064		44		20		24
Machining		Machine hours		79,824		4,989		1,091		3,898
Packing		Orders		26,260		505		110		395

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
Machine setup		$			setups		$	per setup
Machining					machine hours		$	per machine hr.
Packing					orders		$	per order
		$

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Prepare a schedule assigning each activitys overhead cost to the two products.

BC113

AD908

Activity Cost Pools

Expected Use of Cost Drivers per Product

Activity-Based Overhead Rates

Cost Assigned

Expected Use of Cost Drivers per Product

Activity-Based Overhead Rates

Cost Assigned

Machine setup

$

$

$

$

Machining

$

$

Packing

$

$

Total assigned costs

$

$

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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		$		$