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Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and...

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Accounting

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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. Procurement Scheduling Materials handling Product development Production Activity Cost $370,000 250,000 500,000 730,000 1,500,000 Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours Number of Number of Purchase Orders 4,000 4,000 12,000 Number of Moves 1,400 800 Units Number of Production Orders 300 150 800 Number of Engineering Changes 10 Disk drives Tape drives Wire drives Machine Hours 2,000 8,000 10,000 10 25 2,000 4,000 2,500 4,000 Determine the activity rate for production per machine hour. Oa $150.00 Ob. 575.00 Oc. 562.50 Od 5176.47

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