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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 b y product are provided below Scheduling Materials handling Product development Production Activity Cost $302,000 $226,100 $469,200 $723,200 $1,515,400 Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours Number of Production Orders 300 155 730 Number of Purchase Orders 4,170 2,200 Number of Engineering Changes Number of Units 1,600 4,300 2,300 Number of Moves Disk drives Tape drives Wire drives Determine the activity-based cost for each wire drive unit. a. $343.14 Machine Hours 2,100 8,800 11,300 1,380 660 12,400 4,400 28 b. $185.10 ??. $822.14 d. $16.09
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