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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 Activity Base Number of purchase orders Procurement $345,200 Scheduling $238,400 Number of production orders $474,100 Materials handling Product development Number of moves Number of engineering changes $779,400 Production $1,567,700 Machine hours Number Number of Purchase Orders Number of Production Orders of Number of Engineering Changes Machine Hours Number of Units Moves Disk drives 3,860 280 1,490 13 1,500 Tape drives 1,800 185 740 3 2,500 9,400 12,000 3,800 Wire drives 12,000 910 4,300 23 2,900 Determine the activity-based cost for each disk drive unit. Oa. $437.31 Ob. $19.55 Oc. $209.87 d. $672.86
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