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 $309,100 Number of purchase orders 200,200 Number of production orders Scheduling Materials handling Product development 414,400 Number of moves 700,700 Number of engineering changes Production 1,593,900 Machine hours Number Number of Purchase Orders Number of Production Orders Number of of Number of Engineering Changes Machine Hours Moves Units 12 300 3,800 2,000 2,400 Disk drives 1,210 140 2,100 235 6 9,500 Tape drives 4,100 26 760 3,500 Wire drives 10,900 12,500 2,300 The activity rate for the production cost pool is . a. 576.04 per machine hour Ob. $71.16 per machine hour Oc. $16.8 per machine hour O d. $147.2 per machine hour Previous Next