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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

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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 separate activity pools. The budgeted activity cost and activity base data by product are provided below. Procurement Scheduling Activity Cost Activity Base $370,000 Number of purchase orders 250,000 Number of production orders 500,000 Number of moves 730,000 Number of engineering changes 1,500,000 Machine hours Materials handling Product development Production Number of Engineering Machine Changes Hours Number of Units 10 2,000 2,000 10 8,000 4,000 Number of Number of Number Purchase Production of Orders Orders Moves Disk drives 4,000 300 1,400 Tape drives 4,000 150 800 Wire drives 12,000 800 4,000 The activity rate for the scheduling activity cost pool is Ca. 120.00 per production order Ob. 129 41 per production order Oc 11042 per production order Od 200.00 per production order 25 10,000 2.500

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