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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.

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If you cant see, the answer options are:

a. $19.86

b. $202.27

c. $727.54

d. $434.6

Activity Cost Activity Base Procurement $357,400 Number of purchase orders 200,100 Number of production orders Scheduling Materials handling 452,700 Number of moves Product development 713,100 Number of engineering changes Production 1,576,700 Machine hours Number of Number Number of Production Orders Number of Purchase Orders Number of Engineering Changes of Machine Hours Moves Units Disk drives 4,200 450 1,430 15 2,300 1,500 1,800 155 Tape drives 690 9,700 4,100 12,000 Wire drives 820 4,200 26 10,700 2,500 The activity-based cost for each disk drive unit is Oa. $19.86 Ob. $202.27 c. $727.57 d. $484.6

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