Is estimatinng activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be trace to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $304,100 Number of purchase orders Scheduling 238,200 Number of production orders Materials handling 445,500 Number of moves Product development 734,300 Number of engineering changes Production 1,517,800 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,070 320 1,480 14 1,600 2,400 Tape drives 1,800 185 740 5 10,000 4,500 Wire drives 900 740 3,800 23 10,100 2,400 The activity-based cost for each tape drive unit is Oa. $725.11 Ob. $247.23 Oc. $201.36 Od. $16.2

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
$304,100 Number of purchase orders
Scheduling
238,200 Number of production orders
Materials handling
445,500 Number of moves
Product development
734,300
Number of engineering changes
Production
1,517,800
Machine hours
Number of
Number of
Number
Number of
Number
Purchase
Production
of
Engineering
Machine
of
Orders
Orders
Moves
Changes
Hours
Units
Disk drives
4,070
320
1,480
14
1,600
2,400
Tape drives
1,800
185
740
5
10,000
4,500
Wire drives
12,900
740
3,800
23
10,100
2,400
The activity-based cost for each tape drive unit is
Oa. $725.11
Ob. $247.23
Oc. $201.36
Ód. $16.2
Transcribed Image Text: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 $304,100 Number of purchase orders Scheduling 238,200 Number of production orders Materials handling 445,500 Number of moves Product development 734,300 Number of engineering changes Production 1,517,800 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,070 320 1,480 14 1,600 2,400 Tape drives 1,800 185 740 5 10,000 4,500 Wire drives 12,900 740 3,800 23 10,100 2,400 The activity-based cost for each tape drive unit is Oa. $725.11 Ob. $247.23 Oc. $201.36 Ód. $16.2
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