Question

Do It! Review 4-2 a-c 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 Estimated Use of Cost Product Drivers per Activity BC113 Product AD908 44 27 Estimated Overhead $26,400 79,360 27,000 Activity Cost Pools Machine setup Machining Packing 12 Cost Drivers Setups Machine hours Orders 4,960 450 1,130 150 3,830 300 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 Estimated Use of Cost Drivers per Activity Activity-Based Overhead Rates Machine setups setups per setup Machining machine hours per machine hr. A Packing orders per order LINK TO TEXT

Answer 1

Activity cost pools	Estimated Overhead	Estimated use of cost Drivers per activity		Activity Based Overhead rates
Machine setup	26400	44	setups	600	per setup
Machining	79360	4960	machine hours	16	per machine hour
Packing	27000	450	orders	60	per order
	132760
	BC113			AD908
Activity cost pools	Estimated use of cost Drivers per activity	Activity Based Overhead rates	Cost assigned	Estimated use of cost Drivers per activity	Activity Based Overhead rates	Cost assigned
Machine setup	27	600	16200	17	600	10200
Machining	1130	16	18080	3830	16	61280
Packing	150	60	9000	300	60	18000
Total assigned costs			43280			89480
	BC113	AD098
Total assigned costs	43280	89480
Divide by units	2000	1000
Overhead cost per unit	21.64	89.48