Q1:

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				$341,700							Number of purchase orders
Scheduling				$221,000							Number of production orders
Materials handling				$440,300							Number of moves
Product development				$778,500							Number of engineering changes
Production				$1,594,300							Machine hours
	Number of Purchase Orders			Number of Production Orders				Number of Moves			Number of Engineering Changes				Machine Hours			Number of Units
Disk drives	3,860			310				1,400			13				2,000			1,800
Tape drives	2,100			235				510			3				8,200			3,700
Wire drives	11,900			780				4,200			26				10,600			2,300

Determine the activity rate for procurement per purchase order.

$76.65

$166.79

$19.13

$257.89

Q2:

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				$347,100							Number of purchase orders
Scheduling				$223,600							Number of production orders
Materials handling				$442,600							Number of moves
Product development				$774,500							Number of engineering changes
Production				$1,435,100							Machine hours
	Number of Purchase Orders			Number of Production Orders				Number of Moves			Number of Engineering Changes				Machine Hours			Number of Units
Disk drives	4,100			360				1,250			12				2,400			2,000
Tape drives	2,500			175				660			3				9,000			3,900
Wire drives	11,400			800				4,100			21				11,800			2,100

Determine the activity rate per production order for scheduling.

$19.28

$61.86

$167.49

$260.00

Q3:

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				$332,400							Number of purchase orders
Scheduling				$211,500							Number of production orders
Materials handling				$462,500							Number of moves
Product development				$791,600							Number of engineering changes
Production				$1,421,700							Machine hours
	Number of Purchase Orders			Number of Production Orders				Number of Moves			Number of Engineering Changes				Machine Hours			Number of Units
Disk drives	3,990			350				1,500			11				1,900			2,400
Tape drives	2,400			215				790			7				9,000			4,000
Wire drives	11,400			940				3,700			25				11,000			3,000

Determine the activity rate for materials handling per move.

$64.92

$77.21

$18.68

$140.53

Q4:

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				$314,100							Number of purchase orders
Scheduling				$247,200							Number of production orders
Materials handling				$471,300							Number of moves
Product development				$750,100							Number of engineering changes
Production				$1,455,800							Machine hours
	Number of Purchase Orders			Number of Production Orders				Number of Moves			Number of Engineering Changes				Machine Hours			Number of Units
Disk drives	3,890			390				1,300			11				2,000			2,000
Tape drives	1,700			145				520			5				9,100			4,400
Wire drives	12,100			850				4,500			30				10,100			2,000

Determine the activity rate for product development per change.

$34,244

$16,307

$8,153

$73,379

Q5:

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				$368,900							Number of purchase orders
Scheduling				$239,600							Number of production orders
Materials handling				$475,700							Number of moves
Product development				$743,500							Number of engineering changes
Production				$1,597,800							Machine hours
	Number of Purchase Orders			Number of Production Orders				Number of Moves			Number of Engineering Changes				Machine Hours			Number of Units
Disk drives	3,820			270				1,260			15				1,600			2,400
Tape drives	1,600			225				700			7				8,700			4,300
Wire drives	12,200			770				4,300			25				10,900			2,700

Determine the activity rate for production per machine hour.

$75.37

$20.94

$75.99

$151.36