q25

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 $338,100 $234,400 $464,700 $770,100 1,599,000 Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours Number of Units 2,300 4,500 2,400 Number of Number of Purchase Production Number of Engineering Changes Number Disk drives Tape drives Wire drives 11,000 Determine the activity rate for procurement per purchase order. Orders 3,910 1,600 Orders 420 155 860 of Moves 1,250 540 4,500 Machine Hours 1,900 8,300 10,100 25 a. $163.34 b.$235.61 . $20.48