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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 $344,800 Number of purchase orders Scheduling $216,000 Number of production orders Materials handling $412,500 Number of moves Product development $758,000 Number of engineering changes Production $1,525,900 Machine hours Number Number of Purchase Orders Number of Production Orders of Moves Number of Engineering Changes Machine Hours Number of Units Disk drives 3,980 390 1,340 11 1,900 2,100 Tape drives 2,400 145 540 7 9,300 3,800 Wire drives 11,500 820 4,000 26 11,900 2,900 Determine activity rate per production for scheduling. Oa. $159.41 O, $19. 28 Oc. $66.06 Od. $254.46
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