Flynn Industries has three activity cost pools and two products. It estimates production 3,000 units of Product BC113 and 1,500 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 Estimated Use ofCost Drivers per ProductActivity Cost Pools Cost Drivers EstimatedOverhead Estimated Use of CostDrivers per Activity ProductBC113 ProductAD908Machine setup Setups $16,000 40 25 15Machining Machine hours 110,000 5,000 1,000 4,000Packing Orders 30,000 500 150 350Using the above data, do the following: (a). Prepare a schedule showing the computations of the activity-based overhead rates per cost driver.Activity CostPools EstimatedOverhead Estimated Use of CostDrivers per Activity Activity-BasedOverhead RatesMachine setup $ setups $ per setupMachining machine hours $ per machine hr.Packing orders $ per order $ **Chapter 17 Homework: Question 2 of 7****Instruction:**Using the above data, do the following:(a) Prepare a schedule showing the computations of the activity-based overhead rates per cost driver.**Table Structure:**- **Activity Cost Pools** - Machine setup - Machining - Packing- **Estimated Overhead** - [Blank input field for Machine setup] - [Blank input field for Machining] - [Blank input field for Packing]- **Estimated Use of Cost Drivers per Activity** - Setups: [Blank input field] setups - Machine hours: [Blank input field] machine hours - Orders: [Blank input field] orders- **Activity-Based Overhead Rates** - [Blank input field] per setup - [Blank input field] per machine hour - [Blank input field] per order**Additional Information:**- eTextbook and Media resources available.- Option to "Save for Later."- Unlimited attempts allowed.- "Submit Answer" button for submission.

Activity based costing is a method of costing, under which all indirect costs or overhead costs are…

Answered: Flynn Industries has three activity…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Flynn Industries has three activity cost pools and two products. It estimates production 3,000 units of Product BC113 and 1,500 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	Estimated Use of Cost Drivers per Product
Activity Cost Pools	Cost Drivers	Estimated Overhead	Estimated Use of Cost Drivers per Activity	Product BC113	Product AD908
Machine setup	Setups	$16,000	40	25	15
Machining	Machine hours	110,000	5,000	1,000	4,000
Packing	Orders	30,000	500	150	350

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	Estimated Use of Cost Drivers per Activity		Activity-Based Overhead Rates
Machine setup	$		setups		$	per setup
Machining			machine hours		$	per machine hr.
Packing			orders		$	per order
	$