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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

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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 Activity Base Cost Procurement Number of purchase orders $ 370,000 Scheduling 250,000 Number of production orders Number of moves Materials handling 500,000 Product development 730,000 Number of engineering changes Machine hours Production 1,500,000 Number Number of of Number Number of Machine Number Purchase of Engineering Hours of Production Orders Moves Changes Units Orders Disk drives 4,000 300 1,400 10 2,000 2,000 Tape drives 4,000 150 800 10 8,000 4,000 Wire drives 12,000 800 4,000 25 10,000 2,500

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