Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and...
70.2K
Verified Solution
Link Copied!
Question
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
$322,900
Number of purchase orders
Scheduling
$233,900
Number of production orders
Materials handling
$499,900
Number of moves
Product development
$783,400
Number of engineering changes
Production
$1,595,000
Machine hours
Number of Purchase Orders
Number of Production Orders
Number of Moves
Number of Engineering Changes
Machine Hours
Number of Units
Disk drives
4,200
410
1,460
15
2,100
2,100
Tape drives
1,800
165
590
8
8,900
3,900
Wire drives
12,300
900
3,500
30
11,300
3,000
Determine the activity-based cost for each disk drive unit.
a.$642.18
b.$222.01
c.$305.96
d.$17.64
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
