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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.
Line Item Description
Activity Cost
Activity Base
Procurement $ Number of purchase orders
Scheduling Number of production orders
Materials handling Number of moves
Product development Number of engineering changes
Production Machine hours
Line Item Description
Number of
Purchase
Orders
Number of
Production
Orders
Number
of
Moves
Number of
Engineering
Changes
Machine
Hours
Number
of
Units
Disk drives
Tape drives
Wire drives
The activity rate rounded to the nearest cent for the procurement activity cost pool is
a $ per purchase order
b $ per purchase order
c $ per purchase order
d $ per purchase order
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