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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
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are as follows: Activity Cost Activity Base Procurement Scheduling $355,800 207,000 Number of purchase orders Number of production orders Materials handling 440,500 Number of moves Product development 711,900 Number of engineering changes Production 1,495,500 Machine hours Number of Number of Number Number of Number Purchase Orders Production of Engineering Machine of Orders Moves Changes Hours Units Disk drives 3,820 350 1,250 13 2,100 1,700 Tape drives 1,700 135 710 8 9,600 3,900 Wire drives 11,100 830 4,200 20 10,900 3,000 he activity rate (rounded to the nearest cent) for the scheduling activity cost pool is Os $270.57 per production order Ob 17 per production order Oc $137.41 per production order. Od. 121.41 per production order
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