Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 Activity Cost Activity Base $334,400 Number of purchase orders Scheduling 231,800 Number of production orders Materials handling 435,800 Number of moves Product development 717,900 Number of engineering changes Production 1,432,800 Machine hours Number of Number of Number Number of Number Purchase Orders Production of Engineering Machine of Orders Moves Changes Hours Units Disk drives 4,000 290 1,240 13 2,300 1,500 Tape drives 1,700 215 700 7 9,300 3,800 Wire drives 11,200 920 3,500 22 10,200 2,900 The activity rate for the scheduling activity cost pool is Oa. $19.79 per production order Ob. $162.67 per production order Oc. $65.72 per production order Od. $234.67 per production order 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 Base Activity Cost Procurement $316,400 Number of purchase orders Scheduling 222,500 Number of production orders Materials handling 454,400 Number of moves Product development 758,400 Number of engineering changes Production 1,585,100 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,000 380 1,390 14 2,400 2,200 Tape drives 2,200 125 690 5 9,700 3,700 Wire drives 11,100 710 4,500 24 10,700 2,400 The activity-based cost for each disk drive unit is Oa. $236.03 Ob. $296.59 Oc. $754.57 Od. $18.29 Search a L Previous Next >
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started