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Adirondack Corporation is estimating activity costs associated with producing two different sized e-reader tablets. The indirect labor can be traced to three separate activity pools.

Adirondack Corporation is estimating activity costs associated with producing two different sized e-reader tablets. The indirect labor can be traced to three separate activity pools. The budgeted activity cost and activity base information, along with the estimated activity-base information, is provided below.

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Activity

Cost

Activity Base

Purchasing

$ 300,000

Number of purchase orders

Materials handling

500,000

Number of moves

Production

1,500,000

Machine hours

TOTAL $2,300,000

Number of

Purchase

Orders

Number

of

Moves

Machine

Hours

Number

of

Units

7

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