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