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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 $378,800 $244,400 $444,400 $792,900 $1,533,900 Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours Number Number of Purchase Orders 4,120 Number 0 Units 2,000 3,900 2,100 0 Production Orders 390 195 990 Number of Engineering Changes 14 6 24 Machine Hours 2,200 8,500 0 Moves Disk drives Tape drives 2,300 Wire drives 12,500 Determine the activity rate for materials handling per move O$20.02 1,260 590 4,300 11,500 $69.09 $155.17 $72.26
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