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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 Activity Cost Activity Base $331,600 Number of purchase orders 214,300 Number of production orders 491,700 Number of moves 786,700 Number of engineering changes 1,537,300 Machine hours Materials handling Product development Production Number of Purchase Number of Production Orders Number of Moves Number of Orders Number of Engineering Machine Changes Hours 15 2,300 Units 350 1,470 2,300 Disk drives Tape drives 4,120 2,400 125 550 5 8,000 3,700 Wire drives 12,600 920 3,700 22 10,000 2,700 The activity rate for the procurement activity cost pool is a. $17.34 per purchase order b. $75.73 per purchase order c. $153.62 per purchase order d. $237.71 per purchase order

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