The correct Answer is a. $20.71 per purchase order
Procurement Cost=$366,100
Total Purchase Order= 4,180+2,000+11,500
=17,680 Purchase Order
Activity Rate= Procurement Cost/Purchase Order
=366,100/17680
=$20.71 per purchase order
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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 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...
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