Question

Machine Setups Machining hours Do It Review 4-2 0-0 Plynn Industries has three activity cost pools and two products. It estimated production 2,000 units of Product BC113 and 1,000 of Product ADS08. 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 COM Product Product Activity Overhead Drivers 8C113 ADSOB Cost Cost per Pools Drivers Activity setup 35 20 15 Machine 72,000 4,800 1,000 3,800 Packing Orders 22,500 450 350 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 Poole Overhead Drivers per Activity Overhead Rates Machine set 14000 35 setup per setup Machining 72000 4800 machine hours per machine Packing 22500 450 orders per order 100500 LINK TO TEXT

Answer 1

1.)		A	B		A/B
	Activity Cost	Estimated	Estimated	Use of Cost	Activity-	Based
	Pools	Overhead	Drivers	per activity	Overhead	rates
	Machine setup	14,000	35	Setups	400	Per Setup
	Machinig	72,000	4,800	Machine hours	15	Per machine hr
	Packing	22,500	450	Orders	50	Per order
		108,500

2.)			BC113			BC113
	Activity Cost	Estimated Use of Cost	Activity- Based	Cost	Estimated Use of Cost	Activity- Based	Cost
	Pools	Drivers per product	Overhead rate	Assigned	Drivers per product	Overhead rate	Assigned
		A	B	A x B	C	D	C x D
	Machine setup	20	400	8,000	15	400	6,000
	Machinig	1,000	15	15,000	3,800	15	57,000
	Packing	100	50	5,000	350	50	17,500
	Total assigned costs $			28,000			80,500

3.)		BC113	BC113
	Overhead cost per unit ($)	14.00	80.50
		=28000/2000	=80500/1000