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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

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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 separate activity pools. The budgeted activity cost and activity base data by product are provided below. Procurement Scheduling Materials handling Product development Activity Cost Activity Base $352,300 Number of purchase orders 229,700 Number of production orders 453,500 Number of moves 739,300 Number of engineering changes 1,440,800 Machine hours Production Number of Purchase Orders Number of Production Orders Number or Moves Number of Engineering Changes Machine Hours Number of Units 280 13 1,600 1,700 3,900 135 3 9,000 24 11,700 2,800 Disk drives 3,820 1,200 Tape drives 1.900 SJO Wire drives 12,600 930 4,500 The activity rate for the procurement activity cost pool is O $19.23 per purchase order OD. $261.93 per purchase order Oc. $170.78 per purchase order Od: $64.61 per purchase order Next

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