Flynn Industries has three activity cost pools and two products. It expects to produce 2,560 units...

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Accounting

Flynn Industries has three activity cost pools and two products.It expects to produce 2,560 units of Product BC113 and 1,220 ofProduct AD908. Having identified its activity cost pools and thecost drivers for each pool, Flynn accumulated the following datarelative to those activity cost pools and cost drivers. AnnualOverhead Data Expected Use of Cost Drivers per Product ActivityCost Pools Cost Drivers Estimated Overhead Expected Use of CostDrivers per Activity Product BC113 Product AD908 Machine setupSetups $17,015 41 24 17 Machining Machine hours 105,252 5,012 1,1203,892 Packing Orders 29,799 473 187 286 Using the above data, dothe following: Prepare a schedule showing the computations of theactivity-based overhead rates per cost driver. Activity Cost PoolsEstimated Overhead Expected Use of Cost Drivers per ActivityActivity-Based Overhead Rates Machine setup $ setups $ per setupMachining machine hours $ per machine hr. Packing orders $ perorder $ LINK TO TEXT Prepare a schedule assigning each activity’soverhead cost to the two products. BC113 AD908 Activity Cost PoolsExpected Use of Cost Drivers per Product Activity-Based OverheadRates Cost Assigned Expected Use of Cost Drivers per ProductActivity-Based Overhead Rates Cost Assigned Machine setup $ $ $ $Machining $ $ Packing $ $ Total assigned costs $ $ LINK TO TEXTCompute the overhead cost per unit for each product. (Round answersto 2 decimal places, e.g. 12.25.) BC113 AD908 Overhead cost perunit $ $ Click if you would like to Show Work for this question:Open Show Work

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Solution 1:

Computation of activity rates
Activity Estimated Overhead Cost Activity Base Usage of Activity Base Activity Rate
Machine setup $17,015.00 Setups 41 $415.00 Per Setup
Machining $105,252.00 Machine hours 5012 $21.00 Per Machine hour
Packing $29,799.00 Orders 473 $63.00 Per order
Total $152,066.00

Solution 2:

Assignment of overhead to Products
Activity cost pools BC 113 AD908
Expected use of cost drivers per product Activity based overhead rates Cost assigned Expected use of cost drivers per product Activity based overhead rates Cost assigned
Machine setup 24 $415.00 $9,960.00 17 $415.00 $7,055.00
Machining 1120 $21.00 $23,520.00 3892 $21.00 $81,732.00
Packing 187 $63.00 $11,781.00 286 $63.00 $18,018.00
Total $45,261.00 $106,805.00

Solution 3:

Computation of overhead cost per unit
Particulars BC113 AD908
Overhead assigned $45,261.00 $106,805.00
Nos of units 2560 1220
Overhead per unit $17.68 $87.55

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