Maurice Tutor

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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 24 Sep 2017 My Price 6.00

Flynn Industries

Flynn Industries has three activity cost pools and two products. It expects to produce 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.

 

 

 

 

 

   

Estimated

 

 

Expected Use of Cost

 

 

Product

 

 

Product

 

 

Activity Cost Pool

 

 

Cost Drivers

 

 

Overhead

 

 

Drivers per Activity

 

 

BC113

 

 

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.

 

 

(b) Prepare a schedule assigning each activity's overhead cost to the two products.

 

 

(c) Compute the overhead cost per unit for each product. (Round to nearest cent.)

 

 

(d) Comment on the comparative overhead cost per product.

Answers

Maurice Tutor
(5)
Status NEW Posted 24 Sep 2017 08:09 PM My Price 6.00

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