Question
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. Procurement Activity Cost Activity Base $368,400 Number of purchase orders Scheduling 242,300 Number of production orders Materials handling 401,800 Number of moves Product development 742,500 Number of engineering changes Production 1,581,700 Machine hours Number of Purchase Production Number of Number of Number of Engineering Machine Number of Orders Orders Moves Changes Hours Units Disk drives 4,120 250 1,320 11 1,700 1,700 Tape drives 1,500 215 740 7 8,500 4,100 Wire drives 12,800 890 4,400 22 11,200 2,200 The activity rate for the materials handling cost pool is Oa. $73.91 per move Ob. $20 per move Oc. $62.2 per move Od. $178.82 per move
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