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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. Activity Cost Activity Base Procurement $335,600 Number of purchase orders Scheduling 214,000 Number of production orders Materials handling 413,000 Number of moves Product development 700,800 Number of engineering changes Production 1,505,900 Machine hours Number Number of Number of Number Purchase Production of Orders Orders Moves Number of Engineering Changes Machine Hours Units 1.700 550 Disk drives 4,100 360 1,310 Tape drives 2.500 165 Wire drives 11,300 4,100 The activity-based cost for each wire drive unit is 1,800 8,500 11,400 3,800 2,500 800 a $319.47 b. $731.44 C. $18.75 d. $209.93 Teor Grading

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