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Parismint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The Indirect labor can be traced to four

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Parismint 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 Procuremend $347,600 Number of purchase orders Scheduling $244,900 Number of production orders Materials handling 1450,500 Number of moves Product development $775,100 Number of engineering changes Production $1,564,400 Machine hours Number of Number of Number Number of Number Purchase Production Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,120 350 1,300 14 2.500 2.500 Tape drives 2,500 135 790 6 9.500 4,400 Wire drives 11,600 990 21 11 500 2.900 Determine the activity rate for production per machine hour. Ob. $789

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