Solution: $330.94
Working:
Purchase orders Production
orders No. of moves No. of engg.
Changes Machine hours No. of
units
Disk drives 4070 420
1270 12 2300 1900
Tape drives 2400 195
590 5 9800 4000
Wire drives 12200 710
3900 22 11300 2900
18670 1325 5760
39 23400 8800
A B C = A/B D =
Disk drives E = C * D
Procurement 347,800 18670
18.63 4070 75819.28
Scheduling 205,800 1325
155.32 420 65234.72
Materials handling 491,900 5760
85.40 1270 108457.12
Product development 779,400 39
19984.62 12 239815.38
Production 1,418,700 23400
60.63 2300 139444.87
628771.37
The activity-based cost of each disk drive unit is 628771.37 / 1900 units = 330.93
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...
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 $345,800 Number of purchase orders Scheduling $231,000 Number of production orders Materials handling $490,100 Number of moves Product development $785,000 Number of engineering changes Production $1,537,000 Machine hours Number of Purchase Orders Number of...
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. Procurement Scheduling Materials handling Product development Activity Cost Activity Base $366,100 Number of purchase orders 244,900 Number of production orders 414,000 Number of moves 720,800 Number of engineering changes 1,584,700 Machine hours Production Number of Engineering Changes Number ol...
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 $329,900 Number of purchase orders Scheduling 223,700 Number of production orders Materials handling 426,300 Number of moves Product development 762,500 Number of engineering changes Production 1,434,200 Machine hours Number of Purchase Orders Number of...
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 $368,300 Number of purchase orders Scheduling 205,300 Number of production orders Materials handling 463,200 Number of moves Product development 755,700 Number of engineering changes Production 1,427,300 Machine hours Number of Purchase Orders Number of...
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 $355,800 Number of purchase orders Scheduling $219,600 Number of production orders Materials handling $486,900 Number of moves Product development $756,500 Number of engineering changes Production $1,495,300 Machine hours Number of Purchase Orders Number of...
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 $309,800 Number of purchase orders Scheduling 207,900 Number of production orders Materials handling 427,200 Number of moves Product development 787,800 Number of engineering changes Production 1,508,300 Machine hours Number of Purchase Orders Number of...
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 $371,200 Number of purchase orders Scheduling 234,000 Number of production orders Materials handling 486,400 Number of moves Product development 744,600 Number of engineering changes Production 1,479,200 Machine hours Number of Purchase Orders Number of...
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. Procurement Scheduling Materials handling Product development Production Activity Cost Activity Base $302,500 Number of purchase orders 248,300 Number of production orders 496,300 Number of moves 772,900 Number of engineering changes 1,560,800 Machine hours Number of Engineering Changes 10 Number...
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. Procurement Scheduling Materials handling Product development Production Activity Cost Activity Base $335,300 Number of purchase orders 218,700 Number of production orders 460,700 Number of moves 732,900 Number of engineering changes 1,413,300 Machine hours Number of Purchase Orders Number of...