Flynn Industries has three activity cost pools and two products. It expects to p

Question

Flynn Industries has three activity cost pools and two products. It expects to produce 2150 units of Product BC113 and 1280 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

Expected Use of
Cost Drivers per Product

Activity Cost Pool

Cost Drivers

Estimated
Overhead

Expected Use of Cost
Drivers per Activity

Product
BC113

Product
AD908

Complete the following schedule:

Activity Cost
Pools

Estimated
Overhead

Expected Use of Cost
Drivers per Activity

Activity-Based
Overhead Rates

Annual Overhead Data

Expected Use of
Cost Drivers per Product

Activity Cost Pool

Cost Drivers

Estimated
Overhead

Expected Use of Cost
Drivers per Activity

Product
BC113

Product
AD908

Machine setup Setups $19227 39 26 13 Machining Machine hours 95266 5014 1,084 3930 Packing Orders 32879 539 101 438 Flynn Industries has three activity cost pools and two products. It expects to produce 2150 units of Product BC113 and 1280 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 Expected Use of Cost Drivers per Product Activity Cost Pool Cost Drivers Estimated Overhead Expected Use of Cost Drivers per Activity Product BC113 Product AD908 Machine setup Setups $19227 39 26 13 Machining Machine hours 95266 5014 1,084 3930 Packing Orders 32879 539 101 438 Complete the following schedule: Activity Cost Pools Estimated Overhead Expected Use of Cost Drivers per Activity Activity-Based Overhead Rates Machine setup $ per order orders per machine hr. Packing machine hours setups $ per setup Machining $

Explanation / Answer

Hi,

Please find the detailed answer as follows:

Thanks.

Activity Cost
Pools Estimated
Overhead (A) Expected Use of Cost
Drivers per Activity (B) Activity-Based (A/B)
Overhead Rates Machine Set Up 19227 39 Set Ups 493 $ per setup Machining 95266 5014 Machine Hours 19 per machine hr. Packing 32879 539 Orders 61 per order

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