Question

Flynn Industries has three activity cost pools and two products. It expects to produce 3,110 units of Product BC113 and 1,530 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 Activity Cost Pools Machine setup Machining Packing Cost Drivers Setups Machine hours Orders Estimated Overhead $19,166 103,820 31,744 Expected Use of Cost Drivers per Activity 37 5,191 512 Product BC113 21 1,048 104 Product AD908 16 4,143 408 Using the above data, do the following: Prepare a schedule showing the computations of the activity-based overhead rates per cost driver Activity Cost Estimated Expected Use of Cost Drivers per Activity Activity-Based Overhead Rates Pools Overhead Machine setup Machining Packing setups per setup machine hours per machine hr orders per order

Answer 1

Answer:a)-

Flynn Industries
Schedule showing the activity based overheads per cost driver
Activity cost pool	Estimated overhead (a)	Expected use of cost drivers per activity (b)	Activity based overhead rates (c=a/b)
	$
Machine setup	19166	37 setups	518
Machining	103820	5191 machine hours	20
Packing	31744	512 orders	62
	154730