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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 five
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are as follows: Line Item Description Activity Cost Activity Base Procurement $365,700 Number of purchase orders Scheduling 200,200 Number of production orders Materials handling 413,600 Number of moves Product development 765,600 Number of engineering changes Production 1,452,900 Machine hours Line Item Description Number of Purchase Orders Number of Production Orders Number of Moves Number of Engineering Changes Machine Hours Number of Units Disk drives 4,200 370 1,340 12 2,300 2,100 Tape drives 2,000 175 700 4 8,500 4,100 Wire drives 11,200 970 4,500 28 11,000 3,000 The activity rate (rounded to the nearest dollar) for the product development cost pool is
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