Business, 06.12.2021 17:40 jaedenevan062907
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 $338,200 Number of purchase orders Scheduling 244,100 Number of production orders Materials handling 421,700 Number of moves Product development 786,200 Number of engineering changes Production 1,593,200 Machine hours Number of Purchase Orders Number of Production Orders Number of Moves Number of Engineering Changes Machine Hours Number of Units Disk drives 4,020 310 1,220 11 2,200 1,500 Tape drives 2,200 125 620 3 8,200 3,600 Wire drives 11,400 790 4,400 29 11,300 2,800
The activity rate for the product development cost pool is:.
a. $18,284 per engineering change.
b. $82,277 per engineering change.
c. $38,396 per engineering change.
d. $9,142 per engineering change.
Answers: 2
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