Prepare a schedule assigning each activity's overhead cost to the two products.ВС113Activity CostPoolsEstimated Use of CostActivity-BasedCostEsDrivers per ProductOverhead RatesAssignedMachine setup$2$Machining$Packing$Total assigned costs$Compute the overhead cost per unit for each product. (Round answers to 2 decimal places, e.g. 12.25.)ВС113AD908Overhead cost per unit$ Flynn Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 ofProduct AD908. Having identified its activity cost pools and the cost drivers for each pool, Flynn accumulated the following datarelative to those activity cost pools and cost drivers.Estimated Use ofAnnual Overhead DataCost Drivers per ProductEstimatedEstimated Use of CostProductProductActivity Cost PoolsCost DriversOverheadDrivers per ActivityВС113AD908Machine setupSetups$16,400412021MachiningMachine hours111,3204,8401,0603,780PackingOrders28,800450170280Using the above data, do the following:Prepare a schedule showing the computations of the activity-based overhead rates per cost driver.ActivityEstimatedEstimated Use of CostActivity-BasedOverhead RatesCostOverheadDrivers per ActivityPoolsMachinepersetupssetupsetujpermachineMachiningmachhourshr.perPackingordersorde$%24%24%24%24

Activity cost pool Estimated Overhead Cost driver per activity Cost per driver Machine setup 16400…

Answered: ВС113 stimated Use of Cost…

Business

Accounting

ВС113 stimated Use of Cost Activity-Based Drivers per Product Overhead Rates As $ %24 %24 %24

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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Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base information are provided as follows: The estimated activity-base usage and unit information for two product lines was determined as follows: A. Determine the activity rate for each activity cost pool. B. Determine the activity-based cost per unit of each product.
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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 Product Activity Cost Pools Cost Drivers EstimatedOverhead Estimated Use of CostDrivers per Activity ProductBC113 ProductAD908 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 CostPools EstimatedOverhead Estimated Use of CostDrivers per Activity Activity-BasedOverhead Rates Machine setup $ setups…