Question Content Area Panamint Systems Corporation is estimating activity costs associated with producing disk...

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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.

	Activity Cost	Activity Base
Procurement	$326,800	Number of purchase orders
Scheduling	248,800	Number of production orders
Materials handling	414,900	Number of moves
Product development	763,300	Number of engineering changes
Production	1,559,900	Machine hours

	Number of Purchase Orders	Number of Production Orders	Number of Moves	Number of Engineering Changes	Machine Hours	Number of Units
Disk drives	3,840	410	1,210	12	1,900	2,000
Tape drives	2,400	245	500	5	8,000	3,500
Wire drives	13,000	720	3,900	30	10,800	2,100

The activity-based cost for each tape drive unit is

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