Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can betraced to five separate activity pools. The budgeted activity cost and activity base data by product are as follows:Activity CostActivity BaseProcurementScheduling$370,000Number of purchase orders250,000Number of production ordersMaterials handlingProduct developmentProduction500,000 Number of moves730,0001,500,000Number of engineering changesMachine hoursNumber of Number of NumberNumber ofNumberPurchaseProductionofEngineeringMachineofOrdersOrdersMovesChangesHoursUnitsDisk drives4,0003001,400102,0002,000Tape drives4,000150800108,0004,000Wire drives12,0008004,0002510,0002,500The activity-based cost (rounded to the nearest cent) for each wire drive unit isOa. $744.06Ob. $204.13Oc. $173.51Od. $394.12

Activity Rate :— It is the rate used to allocate manufacturing overhead cost to cost object under…

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire driv traced to five separate activity pools. The budgeted activity cost and activity base data by product are as follows: Activity Cost Activity Base Procurement Scheduling $370,000 Number of purchase orders 250,000 Number of production orders Materials handling 500,000 Number of moves Product development Production 730,000 1,500,000 Number of engineering changes Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,000 300 1,400 10 2,000 2,000 Tape drives 4,000 150 800 10 8,000 4,000 Wire drives 12,000 800 4,000 25 10,000 2,500 The activity-based cost (rounded to the nearest cent) for each wire drive unit is O a. $744.06 Ob. $204.13 O c. $173.51 Od. $394.12

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire driv traced to five separate activity pools. The budgeted activity cost and activity base data by product are as follows: Activity Cost Activity Base Procurement Scheduling $370,000 Number of purchase orders 250,000 Number of production orders Materials handling 500,000 Number of moves Product development Production 730,000 1,500,000 Number of engineering changes Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,000 300 1,400 10 2,000 2,000 Tape drives 4,000 150 800 10 8,000 4,000 Wire drives 12,000 800 4,000 25 10,000 2,500 The activity-based cost (rounded to the nearest cent) for each wire drive unit is O a. $744.06 Ob. $204.13 O c. $173.51 Od. $394.12

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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