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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. Activi Activity Base $370,000 Number of purchase orders Procurement Scheduling 250,000 Number of production orders Materials handling 500,000 Number of moves Product development 730,000 Number of engineering changes Production 1,500,000 Machine hours Number of Number of Number Number of Number Purchase Production of Machine of Engineering Changes Orders Orders Moves Hours Units Disk drives 1,400 300 10 2,000 2,000 4,000 150 800 Tape drives 10 8,000 4,000 4,000 800 Wire drives 12,000 25 10,000 2,500 4,000 Determine the activity rate for production per machine hour a. $150.00 Ob. $62.50o C. $176.47 Od. $75.00
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