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 $345,000 Number of purchase orders Scheduling 237,400 Number of production orders Materials handling 402,400 Number of moves Product development 773,800 Number of engineering changes Production 1,509,900 Machine hours Number of Purchase Orders Number of Production Orders Number of Moves Number of Engineering Changes Machine Hours Number of Units Disk drives 4,180 340 1,310 10 2,300 1,600 Tape drives 1,800 225 680 4 8,700 3,900 Wire drives 12,100 880 4,300 22 11,900 2,600 The activity rate for the materials handling cost pool is a.$65.93 per move b.$164.29 per move c.$19.08 per move d.$63.97 per move
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