panimint systems corporation is estimating activity costs associated with producing disk drives,tapes drives,and wiredrives. The...
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panimint systems corporation is estimating activity costs associated with producing disk drives,tapes drives,and wiredrives. The indirect labor can betraced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.
Activity Cost
Activity Base
Procurement
334,100
number of purchase orders
Scheduling
207,000
Number of production orders
Materials handling
451,900
Number of moves
Product development
706,500
Number of engineering changes
Production
1,549,900
Machine hours
Number of Purchase Orders
Number of Production Orders
Number of Moves
Number of Engineering Changes
Machine Hours
Number of Units
Disk drives
4,070
440
1,280
13
1,800
2,000
Tape drives
2,000
205
640
4
9,800
4,300
Wire drives
11,900
950
3,900
24
11,400
2,400
The activity rate for the procurement activity pool is
A. $67.39 per purchase order
B. $209.47 per purchase order
C. $129.78 per purchase order
D. $18.59 per purchase order
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