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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. Procurement Scheduling Materials handling Product development Production Activity Cost $317.900 $246,600 $401,700 Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours $772,900 $1,427,100 Machine Hours Number of Units Number of Engineering Changes 12 7 2,300 8,500 1,700 3,500 2,400 20 12,000 Number of Number of Number Purchase Production of Orders Orders Moves Disk drives 4,120 350 1,230 Tape drives 2,300 125 580 Wire drives 12,100 830 4,400 Determine the activity rate for product development per change. Oa. 541,618 Ob. $89,181 Oc899 Od 519,818
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