Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and...
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Accounting
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
$314,500
Number of purchase orders
Scheduling
$229,100
Number of production orders
Materials handling
$473,600
Number of moves
Product development
$734,700
Number of engineering changes
Production
$1,403,400
Machine hours
Number ofPurchaseOrders
Number of ProductionOrders
NumberofMoves
Number of EngineeringChanges
MachineHours
NumberofUnits
Disk drives
3,860
450
1,430
14
2,000
2,100
Tape drives
2,000
215
510
4
9,000
3,800
Wire drives
12,800
900
4,000
27
11,800
2,200
Determine the activity rate per production order for scheduling.
a. $61.55
b. $146.39
c. $16.85
d. $200.96
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