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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 Product development Activity Cost Activity Base $376,500 Number of purchase orders 216,800 Number of production orders 437,900 Number of moves 720,800 Number of engineering changes 1,568,200 Machine hours Production Number of Purchase Orders Number of Number of Number of Production Orders Number of Engineering Changes Machine Hours Moves Units 1,290 13 2,500 630 5 2,400 9,500 10,100 4,100 2,900 4,200 25 Disk drives 3,920 300 Tape drives 2,400 175 Wire drives 12,800 750 The activity-based cost for each disk drive unit is Oa. $244.63 Ob. 5629.06 C. $19.69 Od. $215.68 4 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 Product development Production Activity Cost Activity Base $376,500 Number of purchase orders 216,800 Number of production orders 437,900 Number of moves 720,800 Number of engineering changes 1,568,200 Machine hours Number of Engineering Changes Number of Machine Hours Units 13 5 Number of Number of Number Purchase Production of Orders Orders Moves Disk drives 3,920 300 1,290 Tape drives 2,400 175 630 Wire drives 12,800 750 4,200 The activity-based cost for each disk drive unit is Oa. $244.63 Ob. 5629.06 c. $19.69 Od. 5215.68 2,400 9,500 10,100 2,500 4,100 2,900 25
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