Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and...
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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 $337,700 Number of purchase orders Scheduling 237,600 Number of production orders Materials handling 473,600 Number of moves Product development 791,800 Number of engineering changes Production 1,471,900 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 3,820 250 1,210 12 2,300 2,200 Tape drives 2,500 145 630 7 8,200 4,100 Wire drives 12,700 800 3,700 25 10,700 2,400 The activity rate for the procurement activity cost pool is a. $17.75 per purchase order O O O O b. $282.59 per purchase order c. $69.43 per purchase order d. $198.83 per purchase order ge
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