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Calculator Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to

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Calculator 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 Procurement Scheduling Materials handling Product development Production $370,000 250,000 500,000 730,000 1,500,000 Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours Number of Number of Number Number of Purchase Production of Engineering Machine Number of Units Orders Orders MovesChanges Hours 4,000 4,000 12,000 2,000 8,000 10,000 10 2,000 4,000 1,400 Tape dr Wire drives 150 800 4,000 25 2,500 Determine the activity rate for product development per change. O a. $30,417 Ob. $73,000 Oc$8,588 Od. $16,222 Previous Next

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