Question

CALCULATOR PRINTER VERSION 4 BACK Do It Review 4-2- Flynn Industries has three activity cost pools and two products. It estimates production 2,000 units of Product 113 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 Activity Cost Pools Machine setup Machining Packing Cost Drivers Setups Machine hours Orders Estimated Overhead $27,000 98,800 31,500 Estimated Use of Cost Drivers per Product Estimated Use of Cost Product Drivers per Activity BC113 45 27 5.200 1,040 450 Product ADOS 18 4,160 290 160 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 $ Machining machine hours per machine $ Packung orders per order $ Prepare a schedule assigning each activity's overhead cost to the two products. BC113 Activity Cost Estimated Use of Cost Activity-Based Cost Pools Drivers per Product Overhead Rates Assigned Machine setup $ $ AD908 Estimated Use of Cost Activity-based Drivers per Product Overhead Rates Cost Assigned $ $ Machining $ $ Packing $ MacBook Air

Answer 1

Estimated overhead Estimated use of cost drivers per unit Activity based overhead rates Activity cost pools Machine setup Machining Packing $ $ $ 27,000 98,800 31,500 45 5200 450 setup machine hours orders 600 19 70 Pr setup pr machine hour Iper order Activity cost pools Estimated use of cost drivers per product 27 1040 160 Machine setup Machining Packing BC113 Activity based overhead rates $ 600 $ $ 19 $ $ 70 $ $ Cost assigned 16,200 19,760 11,200 47,160 AD908 Activity based overhead rates $ 600 $ $ 19 $ $ 70 $ Estimated use of cost drivers per product 18 4160 290 Cost assigned 10.800 79,040 20,300 110,140