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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

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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. Activity Cost Activity Base Procurement $387,300 Number of purchase orders Scheduling 230,700 Number of production orders Materials handling 421,800 Number of moves Product development 731,800 Number of engineering changes Production 1,401,700 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 3,820 340 1,360 13 1,700 1,600 Tape drives 2,500 135 7401 3. 8,200 4,400 Wee drives 13,000 900 4,000 29 11,700 2,000 The activity rate for the procurement activity cost pool is Oa $2005 per purchase Ob. 528147 per purcha Oc $167.75 per purchase order Od M49 per phase order

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