Question

Do It! Review 17-02 a-c (Part Level Submission) 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 Overhead Estimated Use of Cost Drivers per Product Estimated Use of Cost Product Drivers per Activity BC113 44 23 Product AD908 Cost Drivers Setups 21 Activity Cost Pools Machine setup Machining Packing Machine hours $22,000 97,200 30,080 4,860 1,150 3,710 Orders 470 100 370 Using the above data, do the following: (a) 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 setup setups per setup $ $ Machining machine hours per machine hr. $ Packing orders per order $ $ Click if you would like to Show Work for this question: Open Show Work

Answer 1

Activity Rate = Estimated Overhead/Estimated Drivers
Cost Pool	Estimated Overheads	Estimated use of drivers	Overhead Rate
Machine Setup	22000	44	500	per setup
Machining	97200	4860	20	per machine hour
Packing	30080	470	64	per order
Total	149280