Question: Swifty Industries has three activity cost pools and two products. It estimates the production of 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Swifty 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 Cost Estimated Estimated Use of Product Product Pools Drivers Overhead Cost Drivers per BC113 AD908 Activity Machine Setups $17,500 35 20 15 setup Machining Machine 120,750 4,830 1,140 3,690 hours Packing Orders 28,670 470 120 350 Prepare a schedule showing the computations of the activity-based overhead rates per cost driver.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...
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Question:
Swifty Industries has three activity cost pools and two products. It estimates the production of
2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost
pools and the cost drivers for each pool, Swifty 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
Cost
Estimated
Estimated Use of
Product
Product
Pools
Drivers
Overhead
Cost Drivers per
BC113
AD908
Activity
Machine
Setups
$17,500
35
20
15
setup
Machining
Machine
120,750
4,830
1,140
3,690
hours
Packing
Orders
28,670
470
120
350
Prepare a schedule showing the computations of the activity-based overhead rates per cost
driver.
Transcribed Image Text:Question: Swifty Industries has three activity cost pools and two products. It estimates the production of 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Swifty 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 Cost Estimated Estimated Use of Product Product Pools Drivers Overhead Cost Drivers per BC113 AD908 Activity Machine Setups $17,500 35 20 15 setup Machining Machine 120,750 4,830 1,140 3,690 hours Packing Orders 28,670 470 120 350 Prepare a schedule showing the computations of the activity-based overhead rates per cost driver.
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