Q15

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 $347,400 $219,200 $442,500 $788,000 $1,571,500 Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours Number of Number of Purchase Prouction Number of Units 1,700 4,400 2,900 Number of Moves Number of Engineering Changes 12 Machine Hours 2,100 9,600 11,800 Orders Orders 380 175 1,460 Disk drives Tape drives 2,300 Wire drives 11,500 Determine the activity-based cost for each disk drive unit 4,190 590 . 700 3,900 29