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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 Scheduling $337,300 Number of purchase orders 248,000 Number of production orders 483,700 Number of moves 707,600 Number of engineering changes Materials handling Product development Production Number of Number of Number Purchase Production of Orders Orders Moves Number of Engineering Changes Machine Hours Number of Units Disk drives 290 10 2,200 Tape drives 3,910 2,100 12,300 145 1,290 510 4,200 9,300 2,100 3,500 2,600 Wire drives 700 10,200 The activity-based cost for each disk drive unit is Screenshot a. $287.53 b. $231.39 C. $18.42 d. $ 708.61
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