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Flynn Industries has three activity cost pools and two products. It expects to produce 2,940 units of Product BC113 and 1,860 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 $23,370 41 25 16
Machining Machine hours 98,591 5,189 1,124 4,065
Packing Orders 26,728 514 178 336
Using the above data, do the following:
a. Prepare a schedule showing the computations of the activity-based overhead rates per cost driver.
Activity Cost
Pools
Estimated
Overhead
Expected Use of Cost
Drivers per Activity
Activity-Based
Overhead Rates
b. Prepare a schedule assigning each activity
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