Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire...

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Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire...

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	$342,700	Number of purchase orders
Scheduling	217,200	Number of production orders
Materials handling	417,200	Number of moves
Product development	716,900	Number of engineering changes
Production	1,549,500	Machine hours

	Number of Purchase Orders	Number of Production Orders	Number of Moves	Number of Engineering Changes	Machine Hours	Number of Units
Disk drives	3,850	390	1,480	10	1,800	1,600
Tape drives	1,600	175	530	5	8,200	3,800
Wire drives	11,300	980	3,700	20	10,000	2,100

The activity-based cost for each tape drive unit is

a.$20.46

b.$868.45

c.$366.26

d.$219.42

business accounting

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Answer 1

Answer #1

ANSWER d.) $219.42 Total Activity based Cost for Tape drives Procurement » $ 32,736 $ 342700 * 1600 3250 + 1600 + 113.00 Sche

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Answer 2

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