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 $329,700 Number of purchase orders Scheduling 247,200 Number of production orders Materials handling 400,500 Number of moves Product development 728,200 Number of engineering changes Production 1,597,100 Machine hours Number of Purchase Orders Number of Production Orders Number of Moves Number of Engineering Changes Machine Hours Number of Units Disk drives 3,960 380 1,480 12 2,400 1,800 Tape drives 1,600 245 640 7 10,000 4,000 Wire drives 11,500 730 4,000 24 10,100 2,400 The activity rate for the product development cost pool is
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