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Could you Please show the steps as to how you get the answers? Panamint Systems Corporation is estimating activity costs associated with producing disk drives,
Could you Please show the steps as to how you get the answers?
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement Scheduling Materials handling $370,000 Number of purchase orders 250,000 Number of production orders 500,000 Number of moves 730,000 Number of engineering changes 1,500,000 Machine hours Product development Production Number Number Number of Purchase Orders Number of Production of Number of Engineering Changes Machine of Orders Moves Hours Units Disk drives 300 1,400 10 2,000 2,000 Tape drives 4,000 4,000 12,000 150 800 10 8,000 4,000 2,500 Wire drives 800 4,000 25 10,000 The activity-based cost for each disk drive unit is Oa. $394.12 Ob. $279.57 Oc. $92.25 Od. $130.69Step by Step Solution
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