1. 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		Activity Base
   Procurement	$360,900		Number of purchase orders
   Scheduling	240,000		Number of production orders
   Materials handling	459,200		Number of moves
   Product development	797,800		Number of engineering changes
   Production	1,408,100		Machine hours

   	Number of Purchase Orders	Number of Production Orders	Number of Moves	Number of Engineering Changes	Machine Hours	Number of Units
   Disk drives	4,100	250	1,430	13	2,400	2,200
   Tape drives	2,300	245	530	3	8,100	4,200
   Wire drives	12,200	700	4,500	29	10,800	2,700

   The activity rate for the scheduling activity cost pool is

   a.$66.11 per production order

   b.$19.40 per production order

   c.$200.84 per production order

   d.$302.01 per production order

2. 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		Activity Base
Procurement	$332,100		Number of purchase orders
Scheduling	241,800		Number of production orders
Materials handling	440,900		Number of moves
Product development	702,400		Number of engineering changes
Production	1,473,900		Machine hours

	Number of Purchase Orders	Number of Production Orders	Number of Moves	Number of Engineering Changes	Machine Hours	Number of Units
Disk drives	3,830	450	1,370	12	2,400	2,200
Tape drives	2,400	245	590	8	9,300	3,600
Wire drives	12,700	890	3,800	29	11,700	2,000

The activity rate for the procurement activity cost pool is

a.$62.99 per purchase order

b.$17.54 per purchase order

c.$152.56 per purchase order

d.$209.53 per purchase order