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.
\table[[:',,Activity Cost,,Activity,,],[Procurement,,$370,000,Number,f purchase orc,,],[Scheduling,A,250,000,Number,f production o,ders,],[Materials handling,,500,000,Number,f moves,,],[Product developmer,,730,000,Number,f engineering,hanges,],[Production,,1,500,000,Machine,ours,,],[:.,\table[[Number of],[Purchase],[Orders]],\table[[Number of],[Production],[Orders]],\table[[\table[[Number],[of]]],[Moves]],\table[[Number of],[Engineering],[Changes]],\table[[Machine],[Hours]],\table[[\table[[Number],[of]]],[Units]]],[Disk drives,4,000,300,1,400,10,2,000,2,000],[Tape drives,4,000,150,800,10,8,000,4,000],[Wire,12,000,800,4,000,25,10,000,2,500]]
Determine the activity-based cost for each disk drive unit.
a. $92.25
b. $279.57
c. $130.69
d. $394.12
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