anamint 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 provide

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 $340,000   Number of purchase orders
Scheduling 221,900   Number of production orders
Materials handling 423,400   Number of moves
Product development 795,800   Number of engineering changes
Production 1,555,800   Machine hours
 
Number of
Purchase
Orders

Number of
Production
Orders

Number
of
Moves

Number of
Engineering
Changes


Machine
Hours

Number
of
Units
Disk drives 4,040    420       1,210  11         2,500  1,900 
Tape drives 2,200    185       680  7         9,600  3,500 
Wire drives 12,500    790       4,400  30         10,700  2,000 

The activity-based cost for each disk drive unit is

a.$938.06
b.$302.37
c.$18.14
d.$253.22
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