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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
Procurement $348,400 Number of purchase orders
Scheduling $214,400 Number of production orders
Materials handling $487,400 Number of moves
Product development $706,100 Number of engineering changes
Production $1,538,600 Machine hours
Number of Purchase Orders Number of Production Orders Number of Moves Number of Engineering Changes Machine Hours Number of Units
Disk drives 3,910 370 1,480 11 1,700 2,100
Tape drives 1,900 155 700 5 8,300 4,100
Wire drives 11,700 730 4,200 30 10,700 2,500

Determine the activity rate per production order for scheduling.

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