Question Content Area

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 $$370,000$ Number of purchase orders

Scheduling $250,000$ Number of production orders

Materials handling $500,000$ Number of moves

Product development $730,000$ Number of engineering changes

Production $1,500,000$ Machine hours

Number of

Purchase

Orders Number of

Production

Orders Number

of

Moves Number of

Engineering

Changes

Machine

Hours Number

of

Units

Disk drives $4,0003001,400102,0002,000$

Tape drives $4,000150800108,0004,000$

Wire drives $12,0008004,0002510,0002,500$

Determine the activity rate for procurement per purchase order.

a$.$ $$18\mathrm{.}50$

b$.$ $$37\mathrm{.}00$

c$.$ $$15\mathrm{.}42$

d$.$ $$43\mathrm{.}53$