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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. 2 3 5 6 Activity 9 Activity Base Cost Number of purchase $ 370,000 12 Procurement 11 orders Number of production 250,000 Scheduling 14 15 orders Number of moves 500,000 Materials handling MacBook Air 23 1: Product Number of engincering changes 730,000 2 3 development Production 1,500,000 Machine hours 5 Number Number of of Number Number of Number Purchase of Engineering of Orders Production Moves Machine Changes 11 12 Units Hours Orders 15 14 2,000 Disk 4,000 300 1,400 2,000 drives 8,000 Tape 10 4,000 150 800 4,000 drives 23 MacBook Air 10 Wire drives 12,000 800 10,000 4,000 25 2,500 3 Determine the activity rate for procurement per purchase order. $43.53 12 $18.50 15 $15.42 $37.00 23 MacBook Air

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