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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 four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $330,000 Number of purchase orders Scheduling $221,600 Number of production orders Materials handling $428,200 Number of moves Product development Production $703,800 $1,488,600 Number of engineering changes Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine. of Orders Orders Moves Changes Hours Units Disk drives 4,000 390 1,300 10 1,700 2,400 Tape drives 2,500 135 780 3 8,100 4,500 Wire drives 13,000 790 4,400 25 11,000 2,500 Determine the activity rate per production order for scheduling.
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