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. Activity Cost Activity Base Procurement $311,400 Number of purchase orders Scheduling 208,100 Number of production orders Materials handling 409,400 Number of moves Product development 786,800 Number of engineering changes Production 1,431,100 Machine hours Number of Purchase Orders Number of Production Orders Number of Moves Number of Engineering Changes Machine Hours Number of Units Disk drives 3,850 430 1,280 12 2,500 2,500 Tape drives 2,200 175 680 3 8,000 4,300 Wire drives 12,000 960 3,700 30 11,300 2,600 The activity-based cost for each disk drive unit is a.$160.01 b.$17.25 c.$236.04 d.$718.71
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