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 $378,900 Number of purchase orders Scheduling $212,900 Number of production orders $445,700 Number of moves Materials handling Product development Number of engineering changes $715,400 $1,533,600 Production Machine hours Number Number of Engineering Changes Machine Hours Units 2.500 Number of Number of Number Purchase Production Orders Orders Moves Disk drives 4,010 440 1,360 Tape drives 2,200 235 500 Wire drives 12,800 910 4,300 Determine the activity rate per production order for scheduling. Ca. $19.93 b. $239.05 c. $69.39 1,900 9,800 10,400 3,800 2,300 Previous Next >