Question
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
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 $394,600 Number of purchase orders Scheduling 234,800 Number of production orders Materials handling 425,800 Number of moves Product development 706,700 Number of engineering changes Production 1,581,100 Machine hours Number of Purchase Orders Number of Production Orders Number of Moves Number of Engineering Changes Machine Hours Number of Units Disk drives 4,110 250 1,360 10 1,700 2,100 Tape drives 2,500 145 790 6 10,000 4,500 Wire drives 11,100 830 4,400 24 10,000 2,900 The activity rate for the scheduling activity cost pool is
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