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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

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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 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 $345,000 $215,100 $406,100 $738,000 $1,430,700 Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours Number of Purchase Orders Number of Production Orders Number of Moves Machine Hours Number of Units Number of Engineering Changes 15 7 1,900 9,000 10.100 2,000 3,900 2,800 30 Disk drives 4,000 290 1.380 Tape drives 1,800 245 750 Wire drives 12,400 820 4,400 Determine the activity rate for procurement per purchase order. Oa. 18.7 Ob. 525461 Oc. 515878 Od. 613 Previous Next

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