16.

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.

				Activity Cost							Activity Base
Procurement				$332,509							Number of purchase orders
Scheduling				$231,613							Number of production orders
Materials handling				$486,039							Number of moves
Product development				$773,385							Number of engineering changes
Production				$1,439,092							Machine hours
	Number of Purchase Orders			Number of Production Orders				Number of Moves			Number of Engineering Changes				Machine Hours			Number of Units
Disk drives	4,074			383				1,243			14				1,898			2,238
Tape drives	1,588			168				734			5				9,758			3,868
Wire drives	11,512			940				3,791			26				10,373			2,443

Determine the activity rate for materials handling per move. Round to the nearest cent.

Select the correct answer.

$84.26

$19.36

$65.33

$155.34

28.

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.

				Activity Cost							Activity Base
Procurement				$336,049							Number of purchase orders
Scheduling				$238,241							Number of production orders
Materials handling				$455,691							Number of moves
Product development				$799,981							Number of engineering changes
Production				$1,565,675							Machine hours
	Number of Purchase Orders			Number of Production Orders				Number of Moves			Number of Engineering Changes				Machine Hours			Number of Units
Disk drives	4,033			298				1,359			13				1,747			1,963
Tape drives	2,449			207				754			8				9,712			3,595
Wire drives	12,332			823				3,985			28				10,105			2,422

Determine the activity rate for production per machine hour. Round to the nearest cent.

Select the correct answer.

$72.61

$74.73

$16,326.14

$17.86