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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 five
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five 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 $370,000 Number of purchase orders 250,000 Number of production orders 500,000 Number of moves 730,000 Number of engineering changes 1,500,000 Machine hours Number of Engineering Changes 10 Number of Units Machine Hours 2,000 8,000 150 10 Number of Number of Number Purchase Production of Orders Orders Moves Disk drives 4,000 300 1,400 Tape drives 4,000 800 Wire drives 12,000 800 4,000 The activity rate for the product development cost poolis Os 516.223 per engineering things OD: 530,41 per pag change Oc. Sprenging changes Od. 573.000 per pering change 2,000 4,000 2,500 25 10,000 Ramapo company products two products, Blinks and Oinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Number of Direct Labor Hours Machine Hours Units Per Unit Per Unit 1,019 2,263 Blinks Dinks All of the machine hours take place in the Fabrication department, which has an estimated overhead of $103,400. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $82,800. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Banks O. 367.16 Ob 51636 Oc. $335 Od. 534.66
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