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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 $388,300 Number of purchase orders 207,500 Number of production orders 493,000 Number of moves 706,300 Number of engineering changes 1,521,100 Machine hours Production Number of Purchase Orders Number of Production Orders Number of Moves Number of Engineering Changes 13 Number of Units 1,470 Machine Hours 2,400 9,100 11,200 2,100 4,000 Disk drives 4,050 440 Tape drives 2,300 135 600 Wire drives 13,000 970 3,800 The activity rate for the materials handling cost pool is 3 24 2,100 Oa. $1343 per move Ob. 567.01 per move Oc. 583.99 per move Od 520.07 per move
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