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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 product are provided below. Procurement Scheduling Materials handling Product development Production Activity Cost Activity Base $341,000 Number of purchase orders 205,400 Number of production orders 471,000 Number of moves 770,900 Number of engineering changes 1,516,700 Machine hours Number of Number of Purchase Production Number of Number of Engineering Number Machine of Orders Orders Moves Changes Hours Units Disk drives 3,990 390 1,420 13 1,800 1,800 Tape drives 1,600 235 650 4 8,600 3,900 Wire drives 12,800 890 4,000 25 12,000 2,600 The activity rate for the scheduling activity cost pool is Oa. $18.54 per production order Ob. $225.08 per production order Oc. $67.71 per production order Od. $135.58 per production order
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