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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. Procurement Scheduling Materials handling Product development Activity Cost Activity Base $353,800 Number of purchase orders 231,700 Number of production orders 450,500 Number of moves 739,100 Number of engineering changes 1,444,100 Machine hours Production Number of Engineering Changes 14 Machine Hours Number of Units 2,100 3 1,800 8,900 11,400 4,000 2,400 Number of Number of Number Purchase Production of Orders Orders Moves Disk drives 4,060 270 1,410 Tape drives 2,300 245 560 Wire drives 12,700 930 3,900 The activity-based cost for each disk drive unit is Oa. $290.38 Ob. 518.56 Oc. 5190.83 Od. 5769.15 22

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