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Penamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect latbor can be traced to four
Penamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect latbor can be traced to four activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement 346,300 Number of purchase orders Scheduling $218,800 Number of production orders Materials handling $412,400 Number of moves Product development 761,600 Number of engineering changes 1,591,000 Machine hours Number Number of of Number Number Number of Engineering Purchase Production of Machine of Changes HoursUnits Orders Moves 2,1001,800 350 1,220 10 Disk drives 4,050 9,8003,700 245 710 2,100 Tape drives 10,500 3,000 25 4,200 760 Wire drivs 11,700 Determine the activity rate for product development per change $41,009 $9,764 $87,877 Os19,528
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