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Panamint Systems Corporation is estimating activity costs associated with producing dink drives, tapes drives, and wire drives. The indirect labor can be traced to four
Panamint Systems Corporation is estimating activity costs associated with producing dink drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity conductivity base data by product are provided below. Activity Cost Activity Base Procurement $ 370,000 Number of purchase orders Scheduling 250,000 Number of production orders Materials handling 500,000 Number of moves 730,000 Product development Number of engineering changes Machine hours Production 1,500,000 Number Number of of Number Number of Machine Number Purchase of Engineering Hours of Orders Production Moves Changes Units Orders 2,000 2,000 10 4,000 300 1,400 8,000 4,000 10 Disk drives 800 150 4,000 2,500 25 10,000 Tape drives 4,000 800 12,000 5 Wire drives Number Number of of Number Number of Machine Number Purchase of Engineering Hours of Orders Production Moves Changes Units Orders Disk drives 4,000 300 1,400 10 2,000 2.000 Tape drives 4,000 150 800 10 8,000 4.000 12,000 800 4,000 25 Wire drives 10,000 2,500 Determine the activity rate for production per machine hour. a) $150.00 b) $75.00 C) $62.50 d) $176.47 Book Air
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