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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 Actlvity Base $328,000 Number of purchase orders Scheduling 204,400 Number of production orders Materials handling 421,300 Number of meves Product development $720,000 Number of engineering changes $1,580,900 Machine hours Number Number Number of of Number of Englneering Machine o Production of Purchase Changes HoursUnits Moves 2,500 2,200 1,350 Disk drives 3,940 380 4,100 10,000 770 185 Tape drives 2,500 2,000 11,600 30 3,900 980 Wire drives 12,400 Determine the activity rate for procurement per purchase order $132.30 O$212.30 $66.42 O$17.41
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