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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. Activity Cost Activity Base Procurement $315,900 Number of purchase orders Scheduling 202,200 Number of production orders Materials handling 488,200 Number of moves Product development 781,500 Number of engineering changes Production 1,553,100 Machine hours) Number of Purchase Production Number of Number of Number of Number Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 3,950 290 1,220 13 2,500 1,500 Tape drives 1,500) 155 570 3 9,300 4,200 Wire drives 13,000 910 3,500 21 2 12,000 2,700 The activity rate for the production cost pool is a. $17.12 per machine hour b. $92.29 per machine bour c. $157.55 per machine hour d. $65.26 per machine hour
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