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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 Activity Base $318,700 Number of purchase orders 230,300 Number of production orders 487,700 Number of moves 756,700 Number of engineering changes 1,511,700 Machine hours Number of Number of Number Purchase Production of Orders Orders Moves Disk drives 4,080 450 1,430 Tape drives 2,000 245 720 Wire drives 13,000 730 4,300 The activity-based cost for each wire drive unit is Number of Engineering Machine Changes Hours 2,200 9,000 10,400 Number of Units 2,400 3,600 2,900 a. $227.42 Ob. $261.63 O c. $640.85 Od. $16.70

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