Question

s Do It! Review 17-02 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. Estimated Use of Annual Overhead Data Cost Drivers per Product Estimated Estimated Use of Cost Product Product Activity Cost Pools Cost Drivers Overhead Drivers per Activity BC113 AD908 Machine setup Setups $14,000 35 20 15 Machining Machine hours 72,000 4,800 1,000 3,800 Packing Orders 22,500 450 100 350 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 Estimated Use of Cost Activity-Based Pools Overhead Drivers per Activity Overhead Rates Machine setup setups per setup dy Machining machine hours per machine he Packing orders $ per order

Answer 1

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Flynn	A		B	C=A/B
Activity cost pools	Estimated Overhead	Activity Measure	Estimated use of drivers	ABC rates
Machine Setup	14,000.00	Number of setups	35.00	400.00
Machining	72,000.00	Machine Hours	4,800.00	15.00
Packing	22,500.00	Number of orders	450.00	50.00
Total Cost assigned	108,500.00