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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 Production Activity Cost Activity Base $382,700 Number purchase orders 240,700 Number of production orders 485,700 Number of moves 768,600 Number of engineering changes 1,598,400 Machine hours Number of Engineering Changes Machine Hours Number of Units 14 280 2,400 1,900 8 9,500 3,500 3,000 28 10,200 Number of Number of Number Purchase Production of Orders Orders Moves Disk drives 4,200 1,240 Tape drives 2,100 155 750 Wire drives 12,700 910 3,800 The activity rate for the production cost pool is Oa. $157.89 per machine hour Ob. $20.14 per machine hour Oc. $74 per machine hour Od. $83.89 per machine hour ON Next
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