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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 rocurement $339,100 Number of purchase orders Scheduling 233,100 Number of production orders Materials handling 404,400 Number of moves Product development Production 742,200 Number of engineering changes 1,536,200 Machine hours Number of Number of Number Number of Number Purchase Orders Production of Engineering Machine of Orders Moves Changes Hours Units Disk drives 3,910 350 1,460 14 2,100 1,500 Tape drives 1,600 165 630 4 9,300 3,900 Wire drives 12,000 920 3,700 24 11,400 2,900 The activity-based cost for each tape drive unit is Oa. $19.37 Oo. 12049 Oc. 5631.91 Od. 541563
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