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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 Procurement $364,400 Number of purchase orders Scheduling 229,600 Number of production orders 421,400 Number of moves Materials handling Product development 770,000 Number of engineering changes Production 1,533,500 Machine hours Number Number of Purchase Orders Number of Production Orders of Number of Engineering Changes Number of Units Machine Hours Moves Disk drives 3,950 440 1,290 13 2,200 1,700 Tape drives 2,400 225 500 3 9,600 3,700 Wire drives 12,600 950 4,300 21 10,100 2,200 The activity rate for the product development cost pool is Oa $43,703 per engineering change Ob. $10,405 per engineering change Oc. $20,811 per engineering change Od. $93,549 per engineering change
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