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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
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 Scheduling Materials handling Activity Cost Activity Base $372,900 Number of purchase orders 248,000 Number of production orders 458,600 Number of moves 746,600 Number of engineering changes 1,537,100 Machine hours Product development Production Number of Engineering Changes Machine Hours Number of Units 10 2,400 7 1,700 10,000 10,100 4,000 Number of Number of Number Purchase Production of Orders Orders Moves Disk drives 3,960 330 1,270 Tape drives 2,200 225 680 Wire drives 12,500 840 3,500 The activity rate for the production cost pool is Oa 57051 per machine hour Ob $154 66 per machine hour c. $19.98 per machine hour 26 2,400
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