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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 Activity Cost Activity Base $325,200 Number of purchase orders 233,400 Number of production orders 441,400 Number of moves 748,000 Number of engineering changes 1,400,700 Machine hours Materials handling Product development Production Number of Purchase Orders Number of Production Number of Moves Number of Engineering Changes Number of Machine Hours Orders Units Disk drives 4,080 340 1,240 14 1,800 1,600 Tape drives 2,100 185 670 6 6 8,100 4,400 Wire drives 11,500 860 4,500 21 10,800 2,900 The activity-based cost for each disk drive unit is a. $18.39 b. $371.84 C. $175.8 d. $613.88
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