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ABC Inc. is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indi labor can be traced to five activity

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ABC Inc. is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indi labor can be traced to five activity pools. The budgeted activity cost and activity base data by product are provided below, Activity Cost Activity Base Number of purchase orders Procurement $ 370,000 Scheduling Number of production orders 250,000 Number of moves Materials handling 500,000 Product development Number of engineering changes 730,000 Machine hours Production 1,500,000 Number of Number of Purchase Orders Number Number of Machine Number of Engineering Hours Moves Changes Units Production Orders Disk drives 4,000 300 1,400 10 2,000 2,000 Tape drives 4,000 150 800 8.000 4.000 Wire drives 12,000 800 4,000 10,000 2,500 Total 20.000 1.250 6,200 45 20.000 8.500 The rate for the scheduling activity cost pool is O $200.00 per production order $20.00 per production order $29.41 per production order $10.42 per production order

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