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 Procurement Scheduling Materials handling Product development Production $399,000 $219,700 $443,600 Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours $764,100 $1,462,000 Number of Engineering Changes 13 Machine Hours Number of Units 2,100 5 Number of Number of Number Purchase Production of Orders Orders Moves Disk drives 3,980 420 1,250 Tape drives 2,300 185 770 Wire drives 13,000 880 3,900 Determine the activity rate for production per machine hour a. 5207 b. 566 C. $141 OR d. 57491 2,100 9,500 10,500 3,500 2,100 20 Previous Next