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		$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 Production Orders	Number of Moves	Number of Engineering Changes	Machine Hours	Number of Units
Disk drives	4,110	440	1,270	13	2,100	2,100
Tape drives	1,900	235	560	5	9,800	3,900
Wire drives	11,400	770	4,200	21	12,000	2,500

Determine the activity-based cost for each disk drive unit.

a.$310.43

b.$218.38

c.$19.86

d.$754.11

business accounting

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