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 | $314,500 | Number of purchase orders | ||||||||||||||||||
| Scheduling | $229,100 | Number of production orders | ||||||||||||||||||
| Materials handling | $473,600 | Number of moves | ||||||||||||||||||
| Product development | $734,700 | Number of engineering changes | ||||||||||||||||||
| Production | $1,403,400 | Machine hours | ||||||||||||||||||
| Number of Purchase Orders | Number of Production Orders | Number of Moves | Number of Engineering Changes | Machine Hours | Number of Units | |||||||||||||||
| Disk drives | 3,860 | 450 | 1,430 | 14 | 2,000 | 2,100 | ||||||||||||||
| Tape drives | 2,000 | 215 | 510 | 4 | 9,000 | 3,800 | ||||||||||||||
| Wire drives | 12,800 | 900 | 4,000 | 27 | 11,800 | 2,200 | ||||||||||||||
Determine the activity rate per production order for scheduling.
a. $61.55
b. $146.39
c. $16.85
d. $200.96
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